-The above figure shows the demand curve for crude oil.If the market price is $10 a barrel,what is the price elasticity of demand?
A) -.02
B) -1
C) -10
D) -500

Question

-The above figure shows the demand curve for crude oil.If the market price is $10 a barrel,what is the price elasticity of demand?
A) -.02 
B) -1 
C) -10 
D) -500

Quizplus · Accepted Answer

The price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. A value of -1 indicates unitary elasticity, meaning the percentage change in quantity demanded is equal to the percentage change in price.

-The Above Figure Shows the Demand Curve for Crude Oil