Let Ed_t = -0

Multiple Choice

Let Ed_t = -0.5.This implies that the demand for t is

A) elastic,because if P_t increases by 1 percent,Qd_t will decrease by 0.5 percent.
B) elastic,because if P_t decreases by 1 percent,Qd_t will decrease by 0.5 percent.
C) inelastic,because if P_t decreases by $1,Qd_t will increase by 0.5 units.
D) inelastic,because if P_t decreases by 1 percent,Qd_t will increase by 0.5 percent.