A price elasticity of demand for Good X equal to -.85 implies

[A] if price increases by $1.00, quantity demanded will decrease by .85.

[B] if price decreases by $0.85, quantity demanded will increase by 1.

[C] a price of $1.00 will result in sales increase of .85 units.

[D] if price increases by 1%, quantity demanded will decrease by .85%.

[E] if price increases by 1%, demand will decrease by .85%.

Answer rating: 100% (QA)

Price elasticity of demand is the measure of responsiv... View the full answer