In the figure above,at the point where the price is $4 per cup the price elasticity of demand is
A) 2.
B) 0.5.
C) 1.
D) 1.5.
E) 0.

Question

Quizplus · Accepted Answer

The price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. A value of 2 indicates that the quantity demanded changes by 2% for every 1% change in price, which is a common elasticity value at certain price points.

In the Figure Above,at the Point Where the Price Is