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 2.5, then a 10% decrease in price will result in a:

Option 1: 2.5% increase in quantity demanded.

Option 2: 25% increase in quantity demanded.

Option 3: 2.5% decrease in quantity demanded.

Option 4: 25% 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 :  If the price elasticity of demand for a good is -0.5, then a 10% increase in price will result in a:

Option 1: 0.5% decrease in quantity demanded.

Option 2: 5% decrease in quantity demanded.

Option 3: 0.5% increase in quantity demanded.

Option 4: 5% increase in quantity demanded.

Question : Statement 1: If the price elasticity of demand for a product is -1.5, a 10% increase in price will result in a 15% decrease in quantity demanded.

Statement 2: The absolute value of the price elasticity of demand represents the percentage change in quantity demanded for a 1% change in price.

Option 1: Both statements are true.

Option 2: Both statements are false.

Option 3: Statement 1 is true, and statement 2 is false.

Option 4: Statement 1 is false, and statement 2 is true.