Assume the demand for electricity, a necessity with few substitutes, is -0.2. If the electric company raised its rates by 10 percent, we would expect
A. a 10 percent decrease in quantity demanded.
B. a 2 percent increase in quantity demanded.
C. a 10 percent increase in quantity demanded.
D. a 2 percent decrease in quantity demanded.
E. a 5 percent decrease in quantity demanded.
Answer: D. a 2 percent decrease in quantity demanded.