If the price of a slice of pizza rises from $2.50 to $3, and quantity demanded falls from 10,000 slices to 7,400 slices, using the formula for arc price elasticity, what is the percentage change in price?
A)18.18%
B)29.89%
C)20%
D)16.67%

Question

Quizplus · Accepted Answer

The percentage change in price is calculated using the formula:Percentage change in price = (New price - Old price) / Old price * 100Substituting the given values, we get:Percentage change in price = (3 - 2.50) / 2.50 * 100 = 0.2 * 100 = 20%Therefore, the correct answer is A) 20%.

If the Price of a Slice of Pizza Rises from $2.50