If a 1 percent change in price results in a 5 percent change in quantity demanded,then
A)the price elasticity of demand is 5.
B)the slope of the demand curve is 1/5.
C)the slope of the demand curve is 5.
D)the price elasticity of demand is 1/5.
E)there is not enough information to calculate slope or elasticity.

Question

Quizplus · Accepted Answer

Price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. Here, it is 5% / 1% = 5.

If a 1 Percent Change in Price Results in a 5