We observe a 12 percent decrease in units purchased and an 5

We observe a 12 percent decrease in units purchased and a(n) 5 percent increase in price. The price elasticity of demand in terms of absolute values is O A. 0.4 C. 2.4 OD, 1.0

Solution

The correct answer is C. The change in quantity is -12% and the change in price is 5%. Elasticity is the change in quantity/change in price. Which here is -2.4. In absolute values this is 2.4. The correct answer is C.