If the price elasticity of demand for a good is 6, then a 3 percent decrease in
ID: 1187594 • Letter: I
Question
If the price elasticity of demand for a good is 6, then a 3 percent decrease in price results in Answer a. a 20 percent increase in the quantity demanded. b. a 1.8 percent increase in the quantity demanded. c. a 2 percent increase in the quantity demanded. d. an 18 percent increase in the quantity demanded. If the price elasticity of demand for a good is 6, then a 3 percent decrease in price results in a 20 percent increase in the quantity demanded. a 1.8 percent increase in the quantity demanded. a 2 percent increase in the quantity demanded. an 18 percent increase in the quantity demanded. a. a 20 percent increase in the quantity demanded. b. a 1.8 percent increase in the quantity demanded. c. a 2 percent increase in the quantity demanded. d. an 18 percent increase in the quantity demanded.Explanation / Answer
d.an 18 percent increase in the quantity demanded.
price elasticity od demand = % change in quantity / % change in price
6 = dQ/3
dQ = 18