If the quantity demanded of a product rose from 900 to 1,200 when the price of the product fell from $11 to $9, the price elasticity of demand coefficient is equal to
A) −0.20.
B) −0.70.
C) −1.00.
D) −1.42.

Question

Quizplus · Accepted Answer

The price elasticity of demand is calculated using the formula: (percentage change in quantity demanded) / (percentage change in price). The percentage change in quantity demanded is (1200-900)/900 = 0.333, and the percentage change in price is (9-11)/11 = -0.182. The elasticity is 0.333 / -0.182 = -1.42.

If the Quantity Demanded of a Product Rose from 900