alleryStart learning →A demand elasticity of -2 means a 1% price rise leads to what change in quantity demanded?
ARise of 2%
BFall of 2%
CFall of 0.5%
DNo change
Answer & Solution
Correct answer: B. Fall of 2%
Elasticity of -2 means quantity falls twice as many percent as price rises.
Keep practising Law of Demand
Browse all Law of Demand questions for CA Foundation, or explore more Business Economics topics.
Related questions
A shop sells 200 units at Rs 50 each. Price rises to Rs 60 and sales fall to 160. What is A perfectly inelastic demand curve for a good is typical when the good has what?Keynesian economics is sometimes called what?The party with fewer opportunities to avoid a tax usually bears what share of its burden?When demand is perfectly inelastic, who bears the burden of a per-unit tax?The price of tea rises 10% and coffee demand rises 5%. What is the cross elasticity of cofWhich elasticity measures the effectiveness of a campaign in generating new sales?Cross elasticity of demand relates the quantity demanded of good A to the change in what?