Below are some data on price,income and demand for five different time periods.

-Refer to the information above to answer this question.What is the price elasticity of demand for product Y between years 2 and 3?
A)0.18.
B)0.24.
C)3.00.
D)4.09.
E)Infinity.

Question

Below are some data on price,income and demand for five different time periods.
 
-Refer to the information above to answer this question.What is the price elasticity of demand for product Y between years 2 and 3?
A)0.18. 
B)0.24. 
C)3.00. 
D)4.09. 
E)Infinity.

Quizplus · Accepted Answer

The price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. The given options suggest that the correct calculation results in 0.24.

Below Are Some Data on Price,income and Demand for Five