The Law of Demand states that quantity demanded increases in a given time period if: Multiple Choice The price of the good falls. Incomes increase. Preferences change. Expectations improve. Price elasticity of demand shows how: Multiple Choice To compute the slope of the demand curve. Quantity demanded responds to price changes. Quantity demanded responds to changes in the price of other goods. Price responds to demand changes. Suppose a university raises its tuition by 8 percent and as a result the enrollment of students drops by 4 percent. The price elasticity of demand for this circumstance would be: Multiple Choice 8.0. o 4.0. O 2.0. 0.5. O