price of a good increased by 8 percent the quantity demanded

price of a good increased by 8 percent, the quantity demanded of t decreased 4 percent The price elasticity of demand is- -. A price rise will An example of a good with such a demand is total revenue. | O A. 2.00; decrease; toothpaste B. 2.00; decrease; orange juice O c. 0.50, decrease, blue jeans O D. 0.50; increase; toothpaste O E. 200: increase; blue jeans Click to select your answer 9%

Solution

Ans) d is the correct option. 0.50, increase ; toothpaste

Price elasticity of demand = percentage change in quantity / change in price

= 4/8 = 0.50

Since the price elasticity of demand is less than 1 so the demand for good is inelastic.

A price rise will increase the total revenue. Because the change in price will not lead to a larger change in quantity