Suppose you know that the slope of demand for standard oil changes is -1/4. Normally oil changes sell at P=40 and Q=160 are sold. Then a sudden…

Suppose you know that the slope of demand for standard oil changes is -1/4. Normally oil changes sell at P=40 and Q=160 are sold. Then a sudden decrease in supply causes a 2.67% increase in the price. What is the change in quantity demanded as a result of the price increase?

A.) Quantity demanded falls by 1%

B.) Quantity demanded falls by 0.25%

C.) Quantity demanded falls by 2.67%