if-the-price-elasticity-of-demand-for-a-product-is-2-what-happens-to-the-quantit

Question

If the price elasticity of demand for a product is -2, what happens to the quantity demanded if the price increases by 5%?

Accepted Answer

Quantity demanded decreases by 10%.

Answer

Quantity demanded decreases by 5%.

Answer

Quantity demanded increases by 10%.

Answer

Quantity demanded increases by 5%.