Refer to the Above Data

Multiple Choice

Refer to the above data.What is the elasticity of demand between the prices of $4 and $3?

A) 0.2
B) 0.5
C) 1
D) 2
The change in quantity is (400 - 300) /(400 + 300) = 0.143 and the change in price is (3 - 4) /(3 + 4) = 0.143.Thus,elasticity is 0.143/0.143 = 1.0.