Suppose a 10 percent increase in the quantity of lettuce demanded is observed as a result of a 40 percent decline in its price. Then the price elasticity of demand for lettuce is:

Choose the correct one:

Multiple Choice:

• elastic and equal to 4.
• inelastic and equal to 4.
• unitary elastic and equal to 1.
• inelastic and equal to 0.25.
• elastic and equal to 0.25.