Use the following to answer question(s): Demand and Price Elasticity 2

-(Exhibit: Demand and Price Elasticity 2) The price elasticity of demand between points C and D is:
A) -.33
B) -.60
C) -1.0
D) -1.3

Question

Use the following to answer question(s): Demand and Price Elasticity 2
 
-(Exhibit: Demand and Price Elasticity 2) The price elasticity of demand between points C and D is:
A) -.33 
B) -.60 
C) -1.0 
D) -1.3

Quizplus · Accepted Answer

The price elasticity of demand between points C and D can be calculated by using the following formula: 
Percentage change in quantity demanded / Percentage change in price
= (350-250)/[ (350+250)/2] / (12-8)/[(12+8)/2]
= 100/300 * 20/5
= -0.60
Therefore, the best choice is B.

Use the Following to Answer Question(s): Demand and Price Elasticity