If a 1% change in price leads to a 0.5% change in quantity demanded,then elasticity of demand is
A)0.5.
B)1.0.
C)1.5.
D)5.

Name: If a 1% change in price leads to a 0.5% change in quantity demanded,then elasticity of demand is A)0.5. B)1.0. C)1.5. D)5.
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Question

Quizplus · Accepted Answer

Elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price, which in this case is 0.5% / 1% = 0.5.

If a 1% Change in Price Leads to a 0