I am to pick two items; one with an elastic demand and one with an inelastic demand. I have chosen foreign travel and salt respectively Using elasticity information provided, predict changes in demand. The handout we were provided lists salt with a 0.1 elasticity and foreign travel with a 4.0 elasticity. To predict changes in demand, is the correct formula the following?

Forecasted change in quantity = elasticity(% change in price)

So if foreign travel saw a 20% increase in price x 4 = 80% decrease in travel?

or conversely,

if foreign travel saw a 20% decrease in price x 4 = 80% increase in travel?