If a 50 Percent Increase in the Price of Pizza

Multiple Choice

If a 50 percent increase in the price of pizza results in a 25 percent decrease in the quantity demanded of pizza,then the elasticity of demand for pizza:

A) is equal to 0.5 and demand is inelastic.
B) is equal to 0.5 and demand is elastic.
C) is equal to 2 and is elastic.
D) is equal to 2 and is inelastic.
E) cannot be determined from the information provided.