-Refer to the information above to answer this question.What is the elasticity of demand in the $14 to $16 range?
A)0.02.
B)0.7.
C)1.4.
D)2.1.

Question

-Refer to the information above to answer this question.What is the elasticity of demand in the $14 to $16 range?
A)0.02. 
B)0.7. 
C)1.4. 
D)2.1.

Quizplus · Accepted Answer

Elasticity of demand is calculated using the formula: (Percentage change in quantity demanded) / (Percentage change in price). Without specific numbers, we can't calculate the exact value, but given the options, 0.7 is a plausible value for elasticity in many economic contexts, indicating that the demand is somewhat elastic but not perfectly so. Elasticities greater than 1 indicate elastic demand, less than 1 indicate inelastic demand, and around 1 indicate unit elasticity.

-Refer to the Information Above to Answer This Question