A price elasticity of demand for a good or service of 1.8 tells us that:

A. the price rises by 1.8 percent when quantity demanded falls by 1 percent.
B. quantity demanded falls by 1.8 percent when price rises by 1 percent.
C. quantity demanded falls by 1.8 units when price changes by $1.
D. the price changes by $1.80 when quantity changes by 1 unit.


Answer: B

Economics

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