If Price Elasticity of Demand Is 2

Multiple Choice

If price elasticity of demand is 2.0, this implies that consumers would

A) buy twice as much of the good if price falls by 10 percent
B) require a 2 percent cut in price to raise quantity demanded of the good by 1 percent
C) buy 2 percent more of the good in response to a 1 percent cut in price
D) require at least a $2 increase in price before showing any response to the price increase
E) buy twice as much of the good if the price drops 1 percent