If the Absolute Price Elasticity of Demand Is 2

Multiple Choice

If the absolute price elasticity of demand is 2.5, a 10 percent increase in the price will cause

A) the quantity demanded to decrease by 2.5 percent.
B) the quantity demanded to decrease by 25 percent.
C) the quantity demanded to decrease by 4 percent.
D) the quantity demanded to decrease by 40 percent.