If the price of a good increases by 20% and the quantity demanded changes by 15%,then the price elasticity of demand is equal to:
A)0.75.
B)approximately 0.33.
C)approximately 1.33.
D)1.

Question

Quizplus · Accepted Answer

Price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. Here, it is 15% / 20% = 0.75.

If the Price of a Good Increases by 20% and the Quantity