If quantity demanded for rice falls by 4% when price increases 8%,we know that the absolute value of the own-price elasticity of rice is:

A) ​2.5.
B) 0.5.
C) 2.
D) ​0.40.

Own-price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its own price, often used to understand consumer sensitivity to price changes.

Quantity Demanded

The amount of a good or service that consumers are willing and able to purchase at a particular price.

Rice

A staple food grain consumed worldwide, known for its versatility and ability in serving as a primary source of energy.