If the Price Elasticity of Demand Is 1

Multiple Choice

If the price elasticity of demand is 1.4, a 10 percent increase in the price of the good results in

A) a 14 percent increase in the quantity demanded.
B) a 1.4 percent increase in the quantity demanded.
C) a 1.4 percent decrease in the quantity demanded.
D) a 14 percent decrease in the quantity demanded.
E) There is not enough information to answer this question.