If price elasticity of demand is -4 then it means demand falls by 4% due to:- (1) 1% rise in price  (2) 4% rise in price  (3) 1% fall in price  (4) 4% fall in price.

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter20: Elasticity: Demand And Supply
Section: Chapter Questions
Problem 11E: The price elasticity of the demand for gasoline is -0.02. The price elasticity of demand for...
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If price elasticity of demand is -4 then it means demand falls by 4% due to:-

(1) 1% rise in price 

(2) 4% rise in price 

(3) 1% fall in price 

(4) 4% fall in price. 

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