Answer: decrease by 20%
Explanation:
The price elasticity of demand simply measures how the quantity demanded for a particular product will respomd when the price of the product changes.
With regards to the question,
2 = x/10
x = 2 × 10
x = 20%
There'll be a decrease in demand by 20%. This is because according to the law of demand, an increase in the price of a good will bring about a reduction in demand for that good because consumers will buy less of that good.
