If the slope of the demand curve is -1.4,price is $5 and quantity demanded is 13 units,the price elasticity of demand is:
A)0.27.
B)0.38.
C)1.4.
D)1.8.

Name: If the slope of the demand curve is -1.4,price is $5 and quantity demanded is 13 units,the price elasticity of demand is: A)0.27. B)0.38. C)1.4. D)1.8.
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Question

Quizplus · Accepted Answer

The formula to use is (price/quantity)/slope.Here it is 5/13 = approximately 0.3846.Divided by slope of -1.4 yields approximately 0.27.

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