-The table above gives the demand schedule for snow peas. The price elasticity of demand between
$6)00 and $7.00 per kilogram is
A) 2.6.
B) 2.0.
C) 1.0.
D) 5.0.

Question

-The table above gives the demand schedule for snow peas. The price elasticity of demand between
$6)00 and $7.00 per kilogram is
A) 2.6. 
B) 2.0. 
C) 1.0. 
D) 5.0.

Quizplus · Accepted Answer

The price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. Between $6.00 and $7.00 per kilogram, the quantity demanded decreases from 100 to 80 kilograms, a decrease of 20%. The price increases from $6.00 to $7.00, an increase of 16.67%. Therefore, the price elasticity of demand is 20% / 16.67% = 1.2.

-The Table Above Gives the Demand Schedule for Snow Peas