Question: The price elasticity of demand for cotton is around 0.1. An increase in the price of cotton by 10% will cause which of the following to occur:
a) The quantity demanded of cotton will increase by 1%.
b) The quantity demanded of cotton will increase by 10%.
c) The quantity demanded of cotton will fall by 10%.
d) The quantity demanded of cotton will fall by 1%.
e)The demand of cotton will decline