Answer:
The quantity demanded goes down by 16%
Explanation:
The price elasticity of demand (PED) formula is:
PED = %change in quantity demanded / %change in price
Now, we simply rearrange the formula:
%Change in quantity demanded = PED x %change in price
And finally, we plug the amounts into the formula:
%Change in quantity demanded = -4 x 0.04
= -16
