The following graph depicts demand.
Refer to the figure above.The price elasticity of demand at point A is:
A) 5/2.
B) 5/8.
C) 2/5.
D) 8/5.

Name: The following graph depicts demand. Refer to the figure above.The price elasticity of demand at point A is: A) 5/2. B) 5/8. C) 2/5. D) 8/5.
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Question

The following graph depicts demand. 
Refer to the figure above.The price elasticity of demand at point A is:
A) 5/2. 
B) 5/8. 
C) 2/5. 
D) 8/5.

Quizplus · Accepted Answer

The formula to use is (price/quantity)/slope.Here it is 5/4 × 2 = 5/2.(2 is the reciprocal of 0.5. )

The Following Graph Depicts Demand