- Refer to the above data. What is the elasticity of demand between the prices of $4 and $3?
A) 0.2
B) 0.5
C) 1
D) 2

Question

- Refer to the above data. What is the elasticity of demand between the prices of $4 and $3?
A) 0.2 
B) 0.5 
C) 1 
D) 2

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 changes from 10 to 15, a 50% increase, and the price changes from $4 to $3, a 25% decrease. Therefore, the elasticity of demand is 50% / 25% = 2.

- Refer to the Above Data