Answer: 4%
Explanation:
The Price elasticity of demand shows the amount that quantity demanded changes as a result of a change in price.
It is calculated as:
Price Elasticity of Demand = Percentage change in quantity / Percentage change in price
You have two of the above so use those two to find the percentage change in quantity:
Price Elasticity of Demand = Percentage change in quantity / Percentage change in price
4 = Percentage change in quantity / 1
4 * 1% = Percentage change in quantity
Percentage change in quantity = 4%
Quantity demanded increased by 4% as a result of a decrease of 1% in prices.
