If there is a -20 per cent change in y given a 5 per cent change in x, what is the elasticity of y given the change in x?
A)2
B)-.025
C)-1/2
D)-4
E)3

Name: If there is a -20 per cent change in y given a 5 per cent change in x, what is the elasticity of y given the change in x? A)2 B)-.025 C)-1/2 D)-4 E)3
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Question

Quizplus · Accepted Answer

Elasticity is calculated as the percentage change in y divided by the percentage change in x. Here, it is (-20% / 5%) = -4.

If There Is a -20 Per Cent Change in Y