Table: Price Elasticity
(Table: Price Elasticity) Look again at the table Price Elasticity.What is the price elasticity of demand between $2.00 and $1.75?
A)2.33
B)3.00
C)4.00
D)0.125

Question

Quizplus · Accepted Answer

To calculate the price elasticity of demand, we use the formula:
(price change ÷ average price) ÷ (quantity change ÷ average quantity).
Using this formula, we get:
(($2-$1.75) ÷ (($2+$1.75)/2)) ÷ ((150-100) ÷ ((150+100)/2))
= (0.25 ÷ 1.875) ÷ (50 ÷ 125)
= 0.1333 ÷ 0.4
= 3.33
Therefore, the price elasticity of demand between $2.00 and $1.75 is 3.33, which is closest to answer choice B.

Table: Price Elasticity (Table: Price Elasticity) Look Again at the Table Price Elasticity.What