-Refer to the information above to answer this question.What is the elasticity of demand in the $20 to $22 range?
A)0.02.
B)0.7.
C)1.4.
D)2.1.
E)3.33.

Question

-Refer to the information above to answer this question.What is the elasticity of demand in the $20 to $22 range?
A)0.02. 
B)0.7. 
C)1.4. 
D)2.1. 
E)3.33.

Quizplus · Accepted Answer

Elasticity of demand is calculated using the formula: (percentage change in quantity demanded) / (percentage change in price). If the percentage change in quantity demanded is greater than the percentage change in price, the elasticity will be greater than 1, indicating elastic demand.

-Refer to the Information Above to Answer This Question