Exhibit 20-5

-Refer to Exhibit 20-5.For graph (3),what is the price elasticity of demand going between $2.00 and $1.50?
A) 1.0
B) 0
C) 50.0
D) 0.02

Question

Exhibit 20-5
 
-Refer to Exhibit 20-5.For graph (3),what is the price elasticity of demand going between $2.00 and $1.50?
A) 1.0 
B) 0 
C) 50.0 
D) 0.02

Quizplus · Accepted Answer

The price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. If the elasticity is 1.0, it indicates unitary elasticity, meaning the percentage change in quantity demanded is equal to the percentage change in price.

Exhibit 20-5 -Refer to Exhibit 20-5.For Graph (3),what Is the Price Elasticity