If the absolute value of slope of the demand curve is 2.5, price is $6 per unit, and the quantity demanded is 8 units, then the price elasticity of demand is:
A)0.3.
B)0.533.
C)1.6.
D)1.875.

Name: If the absolute value of slope of the demand curve is 2.5, price is $6 per unit, and the quantity demanded is 8 units, then the price elasticity of demand is: A)0.3. B)0.533. C)1.6. D)1.875.
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Question

Quizplus · Accepted Answer

The formula for the price elasticity of demand at a given point is (P/Q)× (1/slope). Here, (6/8)× (1/2.5)= 0.3.

If the Absolute Value of Slope of the Demand Curve