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The Price and Quantity Demanded of a Particular Smartphone App

Question 33

Multiple Choice

The price and quantity demanded of a particular smartphone app are shown in the table below.

 Price  ($ per download)  $0$1$2$3$4$5$6$7 Quantity Demanded  (millions of downloads)  76543210\begin{array} { | l | c | c | c | c | c | c | c | c | } \hline \begin{array} { l } \text { Price } \\\text { (\$ per download) }\end{array} & \$ 0 & \$ 1 & \$ 2 & \$ 3 & \$ 4 & \$ 5 & \$ 6 & \$ 7 \\\hline \begin{array} { l } \text { Quantity Demanded } \\\text { (millions of downloads) }\end{array} & 7 & 6 & 5 & 4 & 3 & 2 & 1&0 \\\hline\end{array}
-Between prices $0 and $1,the numerical value of the price elasticity of demand is:


A) 0.08
B) 7.0
C) 0.17
D) 13.0
E) 1.0

Correct Answer:

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