Question

The price elasticity of demand for eggs is -0.27. Thus, -0.27 is the:

Multiple Choice

size of the shift in the demand for eggs when the price of eggs changes by one percent. 

percentage change in the quantity demanded of eggs when the price of eggs increases by one percent

percentage change percentage change in the price of eggs when the quantity demanded of eggs increases by one percent.

size of the percentage change in the quantity supplied of eggs when the demand for eggs changes due to a price change.

Answer 1

Answer
Option 2
elasticity is a measure of sensitiveness of quantity demanded because of the change in price in percentage terms
-0.27% is a change in quantity when price increases by 1%