-Refer to the above data. What is the elasticity of demand between the prices of $3 and $2?
A) 0.22
B) 0.40
C) 0.56
D) 1.22

Name: -Refer to the above data. What is the elasticity of demand between the prices of $3 and $2? A) 0.22 B) 0.40 C) 0.56 D) 1.22
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Question

-Refer to the above data. What is the elasticity of demand between the prices of $3 and $2?
A) 0.22 
B) 0.40 
C) 0.56 
D) 1.22

Quizplus · Accepted Answer

The elasticity of demand between the prices of $3 and $2 is calculated as follows:Ed = (% change in quantity demanded) / (% change in price)= [(100 - 80) / 80] / [(3 - 2) / 2]= (20 / 80) / (1 / 2)= 0.25 / 0.5= 0.5

-Refer to the Above Data