1. Use the demand curve diagram below to answer the following question. 12 16 What is the price elasticity of demand as price increases from $2 per unit to $4 per unit? Use the base formula of% change quantity divided by % change in price. a) 1/3 b) 6/10 c) 2/3 d) None of the above. 2. Suppose tha in quantity demanded. Price elasticity of demand is equal to: a) I/3 b) 6 c) 2 t a 2% increase in price results in a 6% decrease 3. If price elasticity of demand equals 0.3 in absolute value, then what percentage change in price will result quantity demanded? a) 3% b) 6% c) 20%. d) 50%. in a 6% decrease in 4. Suppose that a 10 increase in price results in a 50 percent decrease in quantity demanded. What does (the absolute value of) own price elasticity of demand equal? a) 0.5 b) 0.2. c)5