To answer the question,refer to the following table showing a demand schedule: $\begin{array}{llcc}
\underline{ \text {Price } }&\underline{ \text { Ouantity } } \
&\underline{\text {demanded }} \
\$200 &1000\
150&1400\
100 &1800\
\end{array}$ If price falls from $150 to $100,what is the elasticity of demand over this range?
A)-0.625
B)-1.0
C)-1.17
D)-2.5
E)-3.0

Question

To answer the question,refer to the following table showing a demand schedule: $\begin{array}{llcc}
\underline{  \text {Price  } }&\underline{ \text { Ouantity } } \
 &\underline{\text {demanded  }} \
\$200 &1000\
150&1400\
100 &1800\
\end{array}$  If price falls from $150 to $100,what is the elasticity of demand over this range?
A)-0.625
B)-1.0
C)-1.17
D)-2.5
E)-3.0

Quizplus · Accepted Answer

The elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. In this case, the quantity demanded increases from 1400 to 1800, an increase of 400 units. The price decreases from $150 to $100, a decrease of $50. Therefore, the elasticity of demand is (400/1400) / (50/150) = 100.625.

To Answer the Question,refer to the Following Table Showing a Demand