If the price elasticity of demand for food is 0.5, then a 5 percent decrease in the price of food will lead to a 2.5 percent increase in quantity demanded.
The responsiveness of a price to a change in the quantity desired is known as price elasticity of demand. quantity demanded in response to a price change. cost to an alteration in revenue. Demand proportional to a change in income.
The change in demand for commodity X as a result of a change in the price of commodity Y is known as the cross elasticity of demand for commodities X and Y. Whereas, symbolically, is the cross-elasticity, is the initial demand of commodity X, is the initial demand change for commodity X, is the initial price of commodity Y, and is the initial price change for commodity Y.
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