A Price Elasticity (E_D)of −1

Multiple Choice

A price elasticity (E_D) of −1.50 indicates that for a ____ increase in price,quantity demanded will ____ by ____.

A) one percent; increase; 1.50 units
B) one unit; increase; 1.50 units
C) one percent; decrease; 1.50 percent
D) one unit; decrease; 1.50 percent
E) ten percent; increase; fifteen percent