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Quantity Demanded Price Elasticity 100 -------------------------------$5 -------

ID: 1250081 • Letter: Q

Question

Quantity Demanded     Price Elasticity
100 -------------------------------$5 ---------------
80----------------------------------$10--------------
60----------------------------------$ 15--------------
40-----------------------------------$20-------------
20------------------------------------$25------------
10-----------------------------------$ 30--------------

Determine the price elasticity of demand at each quantity demanded using the formula: Percentage
Change in quantity demanded = (Q2-Q1)/Q1 divided by percentage change in price= (P2-P1)/P1.

Explanation / Answer

Quantity demanded 100 , elasticity = -0.2 Quantity demanded 80, elasticity=-0.5 Quantity demanded 60. elasticity=-1 Quantity demanded 40, elasticity=-2 Quantity demanded 20, elasticity= -2.5 Hope it is clear.