If the Elasticity of Demand for the Latest American Idol

Multiple Choice

If the elasticity of demand for the latest American Idol album is 1.4, this means

A) few substitutes for the American Idol album exist.
B) a 1 percent increase in the price leads to a 14 percent decrease in quantity demanded.
C) a 10 percent decrease in the price leads to a 140 percent increase in quantity demanded.
D) a 5 percent increase in the price leads to a 7 percent decrease in quantity demanded.