Ryan buys 4 pairs of jeans when the price is $25.He buys 3 pairs when the price increases to $50.Ryan's percentage change in quantity demanded is ________,when the price increase by ________ percent,and thus his price elasticity of demand is ________.
A) -25%; + 100%; -0.25
B) -25%; + 100%; -4
C) +25%; - 100%; -4
D) -15%; + 75%; -0.25

Question

Quizplus · Accepted Answer

The percentage change in quantity demanded is calculated as [(3 - 4) / 4] * 100 = -25%. The price increase percentage is [(50 - 25) / 25] * 100 = +100%. The price elasticity of demand is the percentage change in quantity demanded divided by the percentage change in price, which is (-25% / +100%) = -0.25.

Ryan Buys 4 Pairs of Jeans When the Price Is