Question : If the price elasticity of demand for a good is -1.5, then a 10% increase in price will result in a:

Option 1: 10% decrease in quantity demanded.

Option 2: 15% decrease in quantity demanded.

Option 3: 10% increase in quantity demanded.

Option 4: 15% increase in quantity demanded.

Question : If the price elasticity of demand for a good is 1.2, then a 10% decrease in price will result in a:

Option 1: 1.2% increase in quantity demanded.

Option 2: 12% increase in quantity demanded.

Option 3: 1.2% decrease in quantity demanded.

Option 4: 12% decrease in quantity demanded.

Question : If the price elasticity of demand for a good is 0.8, then a 10% increase in price will result in a:

Option 1: 0.8% increase in quantity demanded.

Option 2: 8% increase in quantity demanded.

Option 3: 0.8% decrease in quantity demanded.

Option 4: 8% decrease in quantity demanded.

Question : Consider being informed that the supply's own-price elasticity is 0.5. Which of the following statements accurately explains this number?

Option 1: A 1% increase in price will result in a 50% increase in quantity supplied.

Option 2: A 1% increase in price will result in a 5% increase in quantity supplied.

Option 3: A 1% increase in price will result in a 2% increase in quantity supplied.

Option 4: A 1% increase in price will result in a 0.5% increase in quantity supplied.

Question : Let's say that a 5% price increase causes the quantity demanded to fall by 10%. Demand's own-price elasticity is equal to:

Option 1: 2

Option 2: 0.5

Option 3: 5

Option 4: None of the above