2. a price elasticity of demand for good x equal to -.85 implies
[a] if price increases by $1.00, quantity demanded will decrease by .85.
[b] if price decreases by $0.85, quantity demanded will increase by 1.
[c] a price of $1.00 will result in sales increase of .85 units.
[d] if price increases by 1%, quantity demanded will decrease by .85%.
[e] if price increases by 1%, demand will decrease by .85%.

Option (D) is correct.

Explanation:

Price elasticity of demand for Good X = -0.85

Price increases by = 1%

Therefore,

Percentage change in quantity demanded = 0.85

Hence, price elasticity of demand of -0.85 implies that if price increases by 1% then as a result quantity demanded decreases by 0.85%.

hey! hope this helps love! Economic problems asserts that an economy's finite resources are insufficient to satisfy all human wants and needs. Economics involves the study of how to allocate resources in conditions of scarcity.