If the Value of the Price Elasticity of Demand Is

Multiple Choice

If the value of the price elasticity of demand is -0.2, this means that a

A) 20 percent decrease in price causes a 1 percent increase in quantity demanded
B) 0.2 percent decrease in price causes a 1 percent increase in quantity demanded
C) 5 percent decrease in price causes a 1 percent increase in quantity demanded
D) 0.2 percent decrease in price causes a 0.2 percent increase in quantity demanded
E) 100 percent decrease in price causes a 200 percent increase in quantity demanded