Refer to the above data.What is the elasticity of demand between the prices of $4 and $3?
A) 0.2
B) 0.5
C) 1
D) 2 The change in quantity is (400 - 300)/(400 + 300)= 0.143 and the change in price is (3 - 4)/(3 + 4)= 0.143.Thus,elasticity is 0.143/0.143 = 1.0.

Question

Refer to the above data.What is the elasticity of demand between the prices of $4 and $3?
A) 0.2 
B) 0.5 
C) 1 
D) 2 The change in quantity is (400 - 300)/(400 + 300)= 0.143 and the change in price is (3 - 4)/(3 + 4)= 0.143.Thus,elasticity is 0.143/0.143 = 1.0.

Quizplus · Accepted Answer

The elasticity of demand between two prices can be calculated by dividing the percentage change in quantity by the percentage change in price. In this case, the percentage change in both quantity and price is the same, 14.3%. Therefore, the elasticity of demand is 1, indicating unit elasticity.

Refer to the Above Data