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Determine the price elasticity of demand if, in response to an increase in price of 10 percent, quantity demanded decreases by 20 percent.

Determine the price elasticity of demand if, in response to an increase in price of 10 percent, quantity demanded decreases by 20 percent.
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Determine the price elasticity of demand if, in response to an increase in price of 10 percent, quantity demanded decreases by 20 percent.

User Sventies
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The price elasticity of demand would be -2. When you divide the change in quantity demanded (-20%) by the change in price (10%), as is required to obtain the price elasticity of demand, you get this result.
User Thedjpetersen
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