Answer the question on the basis of the demand schedule shown below: $$\begin{array}{l}
\begin{array} { c c c }
&&\text { Quantity }\
\text { Price } && \text { Demanded } \
\hline
\$ 77 & & 1 \
6 & & 2 \
5 & & 3 \
4 & & 4 \
3 & & 5
\end{array}
\end{array}$$ Refer to the data.At the point where 3 units are being sold,the coefficient of price elasticity of demand:

Question

Answer the question on the basis of the demand schedule shown below: $$\begin{array}{l}
\begin{array} { c c c } 
&&\text { Quantity }\
\text { Price } && \text { Demanded } \
\hline
\$ 77 & & 1 \
6 & & 2 \
5 & & 3 \
4 & & 4 \
3 & & 5
\end{array}
\end{array}$$ Refer to the data.At the point where 3 units are being sold,the coefficient of price elasticity of demand:

Quizplus · Accepted Answer

The coefficient of price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. At the point where 3 units are being sold, if the price decreases from $5 to $4 (a decrease of $1 from a base of $5, or 20%), the quantity demanded increases from 3 units to 4 units (an increase of 1 unit from a base of 3 units, or approximately 33.33%). This results in an elasticity coefficient greater than 1 (33.33% / 20% = 1.67), indicating that the demand is elastic at this point.

Answer the Question on the Basis of the Demand Schedule