Question

If the price elasticity of demand for a product is |-2|, this implies that Group of answer choices if the price increases by 2 percent, the quantity demanded will decrease by 1 percent. the change in quantity demanded divided by the change in price is equal to 2. if the price increases by $1, the quantity demanded will decrease by 2 units. if the price increases by 1 percent, the quantity demanded will decrease by 2 percent. if the price increases 1 unit, the quantity demanded will decrease by 2 units.

Answer 1

Answer:

if the price increases by 1 percent, the quantity demanded will decrease by 2 percent.

Explanation:

As we know that

Price elasticity of demand = (Percentage change in quantity demanded) ÷ (percentage change in price)

Since the price elasticity of demand is -2 that means the price is increased and the quantity demanded is decreased

The price would be increased by 1% and the quantity demanded would be decreased by 2% because of this, the price elasticity would be negative