Table: Price Elasticity
(Table: Price Elasticity) Look again at the table Price Elasticity.What is the price elasticity of demand between $2.25 and $2.00?
A)4.00
B)5.67
C)9.00
D)17.6

Question

Quizplus · Accepted Answer

The formula to calculate price elasticity of demand is: % change in quantity demanded / % change in price. 
Between $2.25 and $2.00, the percentage change in price is 2.00/2.25 = 0.889 or 88.9%. 
The percentage change in quantity demanded is (18-14)/16 = 0.25 or 25%. 
Therefore, the price elasticity of demand is 25/88.9 = 0.2817 or 2.817 (rounded to two decimal places). 
Using the table, we can see that this falls between a price elasticity of 5.0 and 2.0, so the answer is B) 5.67.

Table: Price Elasticity (Table: Price Elasticity) Look Again at the Table Price Elasticity.What