-Refer to the information above to answer this question.What are the elasticity coefficients for the price ranges $1 to $2 and $9 to $10,respectively?
A)0.22 and 2
B)2 and 0.22
C)0.16 and 6.33
D)6.33 and 0.15

Question

-Refer to the information above to answer this question.What are the elasticity coefficients for the price ranges $1 to $2 and $9 to $10,respectively?
A)0.22 and 2 
B)2 and 0.22 
C)0.16 and 6.33 
D)6.33 and 0.15

Quizplus · Accepted Answer

The elasticity coefficient is calculated using the formula for price elasticity of demand, which is the percentage change in quantity demanded divided by the percentage change in price. For the price range $1 to $2, the coefficient is lower, indicating inelastic demand, while for the price range $9 to $10, the coefficient is higher, indicating elastic demand. The specific values (0.16 and 6.33) suggest these calculations were made based on given demand changes at these price points, reflecting a significant change in sensitivity to price changes.

-Refer to the Information Above to Answer This Question