When the Price of a Good Increased by 5 Percent

Multiple Choice

When the price of a good increased by 5 percent, the quantity demanded of it decreased 10 percent. The price elasticity of demand is ________. A price rise will ________ total revenue.

A) 2.0; decrease
B) 0.5; decrease
C) 2.0; increase
D) 0.5; increase
E) -2.0; decrease