If a 1% change in price leads to a 2% change in quantity demanded,then the elasticity of demand is

A) 0.5.
B) 1.0.
C) 1.5.
D) 2.0.

Question

If a 1% change in price leads to a 2% change in quantity demanded,then the elasticity of demand isA) 0.5.B) 1.0.C) 1.5.D) 2.0.

Lashundria Chatman · Accepted Answer

Final Answer : D, Explanation :  The elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price, which in this case is 2% / 1% = 2.0.

If a 1% change in price leads to a 2% change in quantity demanded,then the elasticity of demand is

A) 0.5.
B) 1.0.
C) 1.5.
D) 2.0.

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