The price of a new electronic toy increases from $16 to $24 and the quantity demanded decreases from 1,050 to 950 per month as a result. Based on this information, the price elasticity of demand (in absolute terms) is estimated to be equal to:
A)5.00
B)4.00
C)0.75
D)0.25

Question

The price of a new electronic toy increases from $16 to $24 and the quantity demanded decreases from 1,050 to 950 per month as a result. Based on this information, the price elasticity of demand (in absolute terms) is estimated to be equal to:
A)​5.00
B)​4.00
C)​0.75
D)​0.25

Quizplus · Accepted Answer

The Answer of The price of a new electronic toy increases from $16 to $24 and the quantity demanded decreases from 1,050 to 950 per month as a result. Based on this information, the price elasticity of demand (in absolute terms) is estimated to be equal to:
A)​5.00
B)​4.00
C)​0.75
D)​0.25

The Price of a New Electronic Toy Increases from $16