The following graph depicts demand.
Refer to the figure above.The price elasticity of demand at point A is:
A)5/2.
B)5/8.
C)2/5.
D)8/5.

Name: The following graph depicts demand. Refer to the figure above.The price elasticity of demand at point A is: A)5/2. B)5/8. C)2/5. D)8/5.
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Question

The following graph depicts demand. 
Refer to the figure above.The price elasticity of demand at point A is:
A)5/2. 
B)5/8. 
C)2/5. 
D)8/5.

Quizplus · Accepted Answer

The formula to use is (price/quantity)/slope.Here it is 5/4 × 2 = 5/2.(2 is the reciprocal of 0.5. )

The Following Graph Depicts Demand