Use the following to answer question(s):
-(Exhibit: Demand and Price Elasticity 1) What is the price elasticity of demand between $2.50 and $2.25?
A) -9
B) -19
C) indeterminate
D) none of the above

Question

Use the following to answer question(s): 
-(Exhibit: Demand and Price Elasticity 1) What is the price elasticity of demand between $2.50 and $2.25?
A) -9 
B) -19 
C) indeterminate 
D) none of the above

Quizplus · Accepted Answer

The price elasticity of demand between $2.50 and $2.25 is calculated as [(500-400)/450]/[(2.25-2.50)/2.375] = -19. Therefore, the best choice is B.

Use the Following to Answer Question(s)