Table 1B: Price Quantity Before: $4.50 30 After: $4.00 34 Refer to Table 1B. Price Elasticity of Demand is about O No answer text provided. O 1.200 O No answer text provided. O 1.250
Table 1B: Price Quantity Before: $4.50 30 After: $4.00 34 Refer to Table 1B. Price Elasticity of Demand is about O No answer text provided. O 1.200 O No answer text provided. O 1.250
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![**Table 1B:**
| | Price | Quantity |
|---------|-------|----------|
| Before: | $4.50 | 30 |
| After: | $4.00 | 34 |
**Text:** Refer to Table 1B. Price Elasticity of Demand is about _______ .
**Options:**
- ☐ No answer text provided.
- ☐ 1.200
- ☐ No answer text provided.
- ☐ 1.250
**Explanation:**
To calculate the price elasticity of demand, use the formula:
\[ \text{Elasticity} = \frac{\% \text{ Change in Quantity}}{\% \text{ Change in Price}} \]
1. **Change in Quantity:**
- Before: 30
- After: 34
- Change: 34 - 30 = 4
- Percentage Change in Quantity: \(\frac{4}{30} \times 100\% \approx 13.33\%\)
2. **Change in Price:**
- Before: $4.50
- After: $4.00
- Change: $4.00 - $4.50 = -$0.50
- Percentage Change in Price: \(\frac{-0.50}{4.50} \times 100\% \approx -11.11\%\)
3. **Elasticity Calculation:**
\[ \text{Elasticity} = \frac{13.33\%}{11.11\%} \approx 1.200 \]
Thus, the Price Elasticity of Demand is approximately 1.200.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F153ad6f6-4cdb-493b-b89d-0fb15fc5cde0%2F4875a95f-1d14-44bb-8317-d240f4cd1885%2F5zh005l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Table 1B:**
| | Price | Quantity |
|---------|-------|----------|
| Before: | $4.50 | 30 |
| After: | $4.00 | 34 |
**Text:** Refer to Table 1B. Price Elasticity of Demand is about _______ .
**Options:**
- ☐ No answer text provided.
- ☐ 1.200
- ☐ No answer text provided.
- ☐ 1.250
**Explanation:**
To calculate the price elasticity of demand, use the formula:
\[ \text{Elasticity} = \frac{\% \text{ Change in Quantity}}{\% \text{ Change in Price}} \]
1. **Change in Quantity:**
- Before: 30
- After: 34
- Change: 34 - 30 = 4
- Percentage Change in Quantity: \(\frac{4}{30} \times 100\% \approx 13.33\%\)
2. **Change in Price:**
- Before: $4.50
- After: $4.00
- Change: $4.00 - $4.50 = -$0.50
- Percentage Change in Price: \(\frac{-0.50}{4.50} \times 100\% \approx -11.11\%\)
3. **Elasticity Calculation:**
\[ \text{Elasticity} = \frac{13.33\%}{11.11\%} \approx 1.200 \]
Thus, the Price Elasticity of Demand is approximately 1.200.
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