Price (P) $50 $30 Demand 800 1,200 Quantity (Q) In the figure above, the price elasticity of demand from point A to point B is: Select one: а. 0.67 b. 0.8 С. 1.25 10
Price (P) $50 $30 Demand 800 1,200 Quantity (Q) In the figure above, the price elasticity of demand from point A to point B is: Select one: а. 0.67 b. 0.8 С. 1.25 10
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:Price (P)
В
$50
$30
Demand
800 1,200
Quantity (Q)
In the figure above, the price elasticity of demand from point A to point B is:
Select one:
а.
0.67
b. 0.8
С.
1.25
d. 1.0
Expert Solution
Step 1
In the given graph, when moving from point A to B,
- Initial quantity demanded is 1,200
- Final quantity demanded is 8,00
- Initial price is 30
- Final price is 50
Step by step
Solved in 2 steps
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