When the Price of a Box of Cereal Is $5,the

Multiple Choice

When the price of a box of cereal is $5,the quantity demanded is 800 boxes.When the price of a box of cereal is $7,the quantity demanded is 400 boxes.Calculate the price elasticity of demand when the price of a box of cereal is $6.

A) 0.5
B) 200
C) 0.005
D) 1.0
E) 2.0