If Consumers Respond to a Car Dealer's 10 Percent Price

Multiple Choice

If consumers respond to a car dealer's 10 percent price cut by increasing the number of cars demanded by 20 percent, we would conclude that

A) that demand for cars is inelastic.
B) that the price elasticity of demand is 2.
C) that the price elasticity of demand is 0.5.
D) that the car dealer lost sales revenue as a result of the price cut.