Which of the following statements about price elasticity of demand is INCORRECT?

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Question

Which of the following statements about price elasticity of demand is INCORRECT?

Options:

A . When the percentage decrease in the price of a good is greater than the percentage increase in its quantity demanded, the elasticity of demand for it is more than 1.

B . When the percentage increase in the price of a good is greater than the percentage decrease in its quantity demanded, the elasticity of demand for it is less than 1.

C . When the percentage decrease in the price of a good is greater than the percentage increase in its quantity demanded, the elasticity of demand for it is less than 1.

D . When the percentage decrease in the price of a good is the same as the percentage increase in its quantity demanded, the elasticity of demand for it is equal to 1.

Answer: Option B
:
B

e_{D} = \frac{% c h a n g e i n q}{% c h a n g e i n p}

You can see that option B is incorrect.

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