If the price elasticity of demand for clothing is 0.64, this implies that
A) a 6.4 percent increase in price the price of clothing leads to a 10 percent decrease in the quantity demanded.
B) a 10 percent increase in the price of clothing leads to a 6.4 percent decrease in the quantity demanded.
C) if there is an increase in the price of clothing the total expenditures on clothing decreases.
D) Both answers A and C are correct.
B
You might also like to view...
What are the three main indicators that make up the Human Development Index?
What will be an ideal response?
In a market where the government imposes a price control, the excess demand or excess supply created will be determined by
a. the imposed price and the slope of the demand curve b. the imposed price and the slope of the supply curve c. only the imposed price determines these things d. the difference between the imposed price and the equilibrium price e. the difference between quantity demanded and quantity supplied at the imposed price