Answered: When the price rises from $5 to $5.75,…

When the price rises from $5 to $5.75, then the quantity demanded falls from 1000 to 800. What is the price elasticity of demand? Answer Choices: a. 1.55 D. 1.33 c. 2.50 d. 0.50

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

When the price rises from $5 to $5.75, then the quantity demanded falls from 1000 to 800. What is the price
elasticity of demand?
Answer Choices:
a. 1.55
b. 1.33
c. 2.50
d. 0.50

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