Suppose That If Poor Households Have a Price Elasticity of Demand

Multiple Choice

Suppose that if poor households have a price elasticity of demand for medical care of 0.70 and wealthy households have a price elasticity of demand for medical care of 0.10, then a 10% increase in the price of medical care would lead to poor households reducing their quantity demanded for medical care by

A) seven times the amount that wealthy household reduce their quantity demanded for medical care.
B) one-seventh the amount that wealthy households reduce their quantity demanded for medical care.
C) one-tenth the amount that wealthy households reduce their quantity demanded for medical care.
D) ten times the amount that wealthy household reduce their quantity demanded for medical care.