Question

If price elasticity of demand is -1.9 and price increases by 2 percent, quantity demanded will

Answer 1

Hi, the answer to the question is a 3.8% decrease in the quantity demanded

Step-by-step explanation:

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Answer 2

quantity demanded will decrease by 3.8%

Step-by-step explanation:

Price elasticity relates price changes to quantity changes

A price elasticity of - 1.9% means that as price increases by 1%, the quantity demanded will decrease by 1.9%

So if price increases by 2%, quantity demanded will decrease by 1.9 x 2 = 3.8%