Exhibit 19-5

-Refer to Exhibit 19-5. For graph (3), what is the price elasticity of demand going between $2.00 and $1.50?
A)1.0
B)0
C)50.0
D)0.02

Question

Exhibit 19-5
​
 
-Refer to Exhibit 19-5. For graph (3), what is the price elasticity of demand going between $2.00 and $1.50?
A)1.0 
B)0 
C)50.0 
D)0.02

Quizplus · Accepted Answer

The price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. If the elasticity is 1.0, it indicates unitary elasticity, meaning the percentage change in quantity demanded is equal to the percentage change in price.

Exhibit 19-5 ​

Exhibit 19-5