Refer to the following table showing a demand schedule:

$\begin{array}{ll}
\text { Price } & \text { Quantity } \
&\text { demanded } \
\$ 200 &1000\
150 & 1400 \
100 & 1800
\end{array}$
-If price falls from $200 to $150, what is the elasticity of demand over this range?
A) -0.625
B) -1.0
C) -1.17
D) -.5
E) -3.0

Question

Refer to the following table showing a demand schedule:

$\begin{array}{ll}
\text { Price } & \text { Quantity } \
 &\text { demanded } \
\$ 200 &1000\
150 & 1400 \
100 & 1800
\end{array}$
-If price falls from $200 to $150, what is the elasticity of demand over this range?
A) -0.625
B) -1.0
C) -1.17
D) -.5
E) -3.0

Quizplus · Accepted Answer

Elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. Here, the percentage change in quantity is (1400-1000)/1000 = 0.4, and the percentage change in price is (150-200)/200 = -0.25. Thus, elasticity = 0.4 / -0.25 = -1.6.

Refer to the Following Table Showing a Demand Schedule Price Quantity demanded $200100015014001001800\begin{array}{ll}\text { Price } & \text { Quantity } \\ &\text { demanded } \\\$ 200 &1000\\150 & 1400 \\100 & 1800\end{array} Price $200150100​ Quantity demanded 100014001800​

Refer to the Following Table Showing a Demand Schedule $\begin{array}{ll}\text { Price } & \text { Quantity } \\ &\text { demanded } \\\$ 200 &1000\\150 & 1400 \\100 & 1800\end{array}$