What is the price elasticity of demand

Question

1. What is the price elasticity of demand if raw sugar prices rose by 3% and raw sugar consumption declined by 2%?

• 0.67
• 0.72
• 0.54
• 0.61

2. What is the price elasticity of demand if there is a 10% increase in the price of cigarettes reduces smoking among 8^th to 10^th graders by 10%?

• 1.06
• 1.3
• 0.83
• 1.0

3. What is the price elasticity of demand if the price of luxury cars increases by 4% while the quantity demanded decreases by 8%?

• 1.0
• 2.0
• 0.86
• 0.96

4. A price elasticity of demand of 0.64 is:

• Unobtainable
• Elastic
• Inelastic
• Unit elastic

5. A price elasticity demand of 1.35 is:

• Unit elastic
• Unobtainable
• Elastic
• Inelastic