If the price of a product increases by 10% and the quantity demanded decreases by 5%, what is the price elasticity of demand for this product?

To find the price elasticity of demand, we can use the formula that measures how much the quantity demanded changes when the price changes. In this case, the price increases by 10%, and the quantity demanded decreases by 5%. We divide the percentage change in quantity demanded by the percentage change in price, which gives us -5% divided by 10%, resulting in -0. 5. This means that for every 1% increase in price, the quantity demanded decreases by 0.