The price of aluminum has fallen by 15% this year. As a result of the price decline, the quantity of aluminum demanded has increased by 30%. It follows that

The price of aluminum has fallen by 15% this year. As a result of the price decline, the quantity of aluminum demanded has increased by 30%. It follows that



A. The price elasticity of demand for aluminum is -0.5
B. The price elasticity of demand for aluminum is -2.
C. The demand for aluminum is inelastic
D. Both A and C






Answer: B