Use the table below to answer the following question.
Table 4.1.3

-Refer to Table 4.1.3. The price elasticity of demand for Jolt is
A)1.
B)2.5.
C)3.0.
D)0.33.
E)cannot be calculated because income is not constant.

Question

Use the table below to answer the following question.
Table 4.1.3
 
-Refer to Table 4.1.3. The price elasticity of demand for Jolt is
A)1. 
B)2.5. 
C)3.0. 
D)0.33. 
E)cannot be calculated because income is not constant.

Quizplus · Accepted Answer

The price elasticity of demand for Jolt can be calculated using the formula: % Change in Quantity Demanded / % Change in Price. From the table, we can see that a 15% decrease in price leads to a 50% increase in quantity demanded, giving us a price elasticity of demand of 3.0.

Use the Table Below to Answer the Following Question