Answer to Question #220315 in Economics for Sifiso Siboniso NA

Question

If the price elasticity of demand for Omo washing powder is 3.0, a ________ drop in price leads to a __________ rise in the quantity demanded.



A. R1 000; 333-unit



B. R1 000; 3000-unit



C. 12 per cent; 36 per cent



D. 12 per cent; 4 per cent

Answer 1

If the price elasticity of demand for Omo washing powder is 3.0, a 12 percent drop in price leads to a 36 percent rise in the quantity demanded. Therefore, the correct answer is (C).

Answer:

C. 12 percent; 36 percent.