The own price elasticity of demand for apples is - 1.5. If the price of apples falls by 6 percent, what will happen to the quantity of apples demanded

A. It will increase 4 percent.

B. It will decrease 4 percent.

C. It will increase 9 percent.

D. It will decrease 9 percent.

Question

Izabella Henry

Business

6 February, 03:13

The own price elasticity of demand for apples is - 1.5. If the price of apples falls by 6 percent, what will happen to the quantity of apples demanded

A. It will increase 4 percent.

B. It will decrease 4 percent.

C. It will increase 9 percent.

D. It will decrease 9 percent.

+3

Answers (1)

Know the Answer?

Matilda Holder · Answer 1

Option (C) is correct.

Explanation:

Given that,

own price elasticity of demand = - 1.5

Percentage change in price of apple = 6 percent

Therefore,

Own price elasticity of demand = Percentage change in quantity demanded : Percentage change in price

1.5 = Percentage change in quantity demanded : 6

Percentage change in quantity demanded = 1.5 * 6

= 9 percent

Hence, the quantity demanded for apple increases by 9 percent when the price fall by 6 percent.

The own price elasticity of demand for apples is - 1.5. If the price of apples falls by 6 percent, what will happen to the quantity of apples demandedA. It will increase 4 percent.B. It will decrease 4 percent.C. It will increase 9 percent.D. It will decrease 9 percent.

The own price elasticity of demand for apples is - 1.5. If the price of apples falls by 6 percent, what will happen to the quantity of apples demanded

A. It will increase 4 percent.

B. It will decrease 4 percent.

C. It will increase 9 percent.

D. It will decrease 9 percent.