If the price of a good increases by 10%, and the quantity demanded changes by 15%, then the price elasticity of demand is equal to:
A)1.5.
B)approximately 0.66.
C)approximately 1.33.
D)1.

Question

Quizplus · Accepted Answer

Price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. Here, it is 15% / 10% = 1.5.

If the Price of a Good Increases by 10%, and the Quantity