Answered: If price elasticity of demand is -4…

If price elasticity of demand is -4 then it means demand falls by 4% due to:- (1) 1% rise in price (2) 4% rise in price (3) 1% fall in price (4) 4% fall in price.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 3SQP

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Question

If price elasticity of demand is -4 then it means demand falls by 4% due to:-

(1) 1% rise in price

(2) 4% rise in price

(3) 1% fall in price

(4) 4% fall in price.

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