If Price Elasticity of Demand Is -0.5

Multiple Choice

If price elasticity of demand is -0.5,

A) a 1% decrease in quantity demanded leads to a 0.5% decrease in price
B) a 1% decrease in price leads to a 0.5% increase in quantity demanded
C) a 50% decrease in price leads to a 1% increase in quantity demanded
D) a 50% decrease in price leads to a 100% increase in quantity demanded
E) demand is elastic