From the above, calculate the price elasticity of demand
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Correct Answer: Option A
Explanation:
price elasticity of demand is calculated as the;
 percentage change in quantity demanded
     percentage change in price
Change in quantity = 500 - 400 = 100
% change = ​​​​​​100/100 = 1%
Change in price = 70 - 50 = 20
% change = 20/100 = 0.2%
price elasticity = \(\frac{1}{0.2}\) = 5
price elasticity of demand is calculated as the;
 percentage change in quantity demanded
     percentage change in price
Change in quantity = 500 - 400 = 100
% change = ​​​​​​100/100 = 1%
Change in price = 70 - 50 = 20
% change = 20/100 = 0.2%
price elasticity = \(\frac{1}{0.2}\) = 5