A peck is 1/4 of a bushel.If the price elasticity of demand for peas is -0.10 when peas are measured in bushels, then when peas are measured in pecks, the price elasticity of demand for peas will be
A)-0.10.
B)-0.40.
C)-0.03.
D)-0.20.
E)none of the above.

Question

Quizplus · Accepted Answer

Price elasticity of demand is a unit-free measure, meaning it does not depend on the units in which quantity is measured. Therefore, the elasticity remains the same regardless of whether peas are measured in bushels or pecks.

A Peck Is 1/4 of a Bushel