To calculate a price elasticity of demand, we need to
A) divide the percentage change in the price by the percentage change in the quantity demanded.
B) multiply the percentage change in the quantity demanded by the percentage change in the price.
C) know the slope of the demand curve.
D) multiply the percentage change in the price by the percentage change in the quantity demanded.
E) divide the percentage change in the quantity demanded by the percentage change in the price.

Question

Quizplus · Accepted Answer

Price elasticity of demand is calculated by dividing the percentage change in quantity demanded by the percentage change in price, which measures how much the quantity demanded of a good responds to a change in the price of that good.

To Calculate a Price Elasticity of Demand, We Need to