The price elasticity of demand for cereal is 5 based on this elasticity what will percentage...

The price elasticity of demand for cereal is 5 based on this elasticity what will percentage change in quantity of breakfast cereal as a result of 5% decrease in cereal's price? A 5% B 1% C -1% D 25%

Expert Solution

Ans. D 25%

Here negative sign shows decrease in demand.

Percentage change in quantity = 25%

Rahul Sunny answered 2 years ago

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