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# Q1W11AnswersExplained - Quiz 1 Winter 2011 True-False...

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4. The price elasticity of the demand for milk is four times higher if the quantity of milk is measured in quarts instead of gallons. (There are four quarts in a gallon.) Answer: False The price elasticity of demand if the percentage change in quantity demanded divided by the percentage change in price moving along the demand curve. The percentage change in demand for a given change in price is the same if quantity is measured in gallons or quarters. A 10 gallon increase relative to a base of 100 gallons is a 10 percent increase. Measured in quarters, the same change is a 40 quart increase relative to a base of 400 quarts. It is still 10 percent. Price elasticity doesn’t depend on the units of measure. 5.
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Q1W11AnswersExplained - Quiz 1 Winter 2011 True-False...

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