A retailer originally priced an e-reader at $99 and sold 1,200 units per week. After raising the price to $120, sales dropped to 1,000 units per week. What would the item's price elasticity be?
A) -2.4005
B) 2.4005
C) -3
D) 3.33
E) -.7855

Question

Quizplus · Accepted Answer

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A commonly used measure of price sensitivity is price elasticity, or the percentage change in quantity sold divided by the percentage change in price.

A Retailer Originally Priced an E-Reader at $99 and Sold