If the price of a bicycle changes from N120 to N80 and quantity bought changes from 300 to 500 units, the elasticity of demand for bicycle is
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Correct Answer: Option D
Explanation:
change in price = 120- 80 = 40
change in quantity = 500 - 300 = 200
% change = 40/100 = 0.4
200/100 = 2
0.4/2 = 0.2
change in price = 120- 80 = 40
change in quantity = 500 - 300 = 200
% change = 40/100 = 0.4
200/100 = 2
0.4/2 = 0.2