Suppose the price elasticity of demand is elastic, then:

choose the correct answer:

Multiple Choice

• a 1 percent fall in the price will lead to a 1 percent increase in quantity demanded.
• a 1 percent increase in the price will lead to a lower than 1 percent decrease in quantity demanded.
• a 1 percent fall in the price will lead to a lower than 1 percent increase in quantity demanded.
• a 1 percent fall in the price will lead to a higher than 1 percent increase in quantity demanded.
• a 1 percent increase in the price will lead to a higher than 1 percent increase in quantity demanded.