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23 August, 20:57

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.

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Answers (1)
  1. 23 August, 22:17
    0
    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.
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Home » Business » 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.
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