Epperson Company's management believes that every 3% decrease in the selling price of one of the company's products leads to an 8% increase in the product's total unit sales.The product's price elasticity of demand as defined in the text is closest to:
A)-2.82
B)-2.98
C)-2.53
D)-2.03

Question

Quizplus · Accepted Answer

F1F1F1S1F1F1F10_d = ln(1 + % change in quantity sold)/ln(1 + % change in price) = ln(1 + (0.08))/ln(1 + (-0.03)= -2.53

Epperson Company's Management Believes That Every 3% Decrease in the Selling