Price (#) | Quantity Demanded |
8 | 10 |
6 | 12 |
A. -1.25
B. 0.62
C. 1.25
D. 1
Correct Answer: Option C
C. 1.25
Explanation
The elasticity of demand is calculated using:
ρd = % Δ in P
% Δ in Q
NOTE: Elasticity of demand is always positive. Therefore, the negative sign is ignored or In extra negative sign is introduced to make it positive. So the answer is 1.25
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