The table given below reports the price and quantity demanded of a commodity. Table 5.1

- According to Table 5.1,when the price increases from $5 to $6,the price elasticity of demand is _____.
A)0.25
B)1.0
C)1.3
D)1.8
E)1.67

Question

The table given below reports the price and quantity demanded of a commodity. Table 5.1

- According to Table 5.1,when the price increases from $5 to $6,the price elasticity of demand is _____.
A)0.25 
B)1.0 
C)1.3 
D)1.8 
E)1.67

Quizplus · Accepted Answer

The price elasticity of demand is calculated using the formula: (percentage change in quantity demanded) / (percentage change in price). If the elasticity is given as 1.67, it means that for a 1% increase in price, the quantity demanded decreases by 1.67%.

The Table Given Below Reports the Price and Quantity Demanded