-In Figure 5-3,the price elasticity of demand equals __________ between points T and U and equals __________ between points V and W.
A)0.33;1.86
B)0.54;3
C)3;0.54
D)1.86;0.33
E)2;2

Question

-In Figure 5-3,the price elasticity of demand equals __________ between points T and U and equals __________ between points V and W.
A)0.33;1.86 
B)0.54;3 
C)3;0.54 
D)1.86;0.33 
E)2;2

Quizplus · Accepted Answer

The price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. Between points T and U, the elasticity is 1.86, indicating a relatively elastic demand. Between points V and W, the elasticity is 0.33, indicating a relatively inelastic demand.

-In Figure 5-3,the Price Elasticity of Demand Equals __________ Between