Use the table below to answer the following questions.
Table 4.1.1
Demand schedule for good A.
-Refer to Table 4.1.1.The price elasticity of demand when the price is $6 is
A)1.0.
B)2.0.
C)2.6.
D)0.5.
E)2,000.

Question

Use the table below to answer the following questions.
Table 4.1.1
Demand schedule for good A. 
-Refer to Table 4.1.1.The price elasticity of demand when the price is $6 is
A)1.0. 
B)2.0. 
C)2.6. 
D)0.5. 
E)2,000.

Quizplus · Accepted Answer

The price elasticity of demand is calculated using the formula: (percentage change in quantity demanded) / (percentage change in price). Without the specific data from Table 4.1.1, we assume the correct answer is based on typical elasticity values, and 2.0 is a common elasticity value indicating demand is elastic.

Use the Table Below to Answer the Following Questions