Homework answers / question archive / Suppose the price of cherries decreases by 4 percent and consumers respond by increasing the quantity demand by 2 percent

Suppose the price of cherries decreases by 4 percent and consumers respond by increasing the quantity demand by 2 percent

Economics

Share With

Suppose the price of cherries decreases by 4 percent and consumers respond by increasing the quantity demand by 2 percent. The price elasticity of demand for cherries is: 
2.0 and demand is inelastic. 
2.0 and demand is elastic. 
0.5 and demand is inelastic. 
0.5 and demand is elastic.