Final answer:
The price elasticity of demand measures the responsiveness of quantity demanded to changes in price. If the price elasticity of demand is 1.5, a 6% decrease in price will result in a 9% increase in quantity demanded.
Step-by-step explanation:
The price elasticity of demand measures the responsiveness of quantity demanded to changes in price. If the price elasticity of demand for a firm's product is equal to 1.5, it means that a 1% decrease in price will result in a 1.5% increase in quantity demanded, and vice versa. Therefore, if the manager decreases the price of the product by 6 percent, the manager predicts the quantity demanded will increase by 9 percent (6% x 1.5 = 9%).