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Dana Is an Art Historian Who Needs to Travel to Italy

Question 15

Multiple Choice

Dana is an art historian who needs to travel to Italy to do research. Art historians usually don't have a lot of money, and therefore are very sensitive to price changes. If the price of the hotel she is staying in decreases from 150 euros per night to 100 euros per night, Dana will increase the length of her stay from 20 days to 40 days. What is Dana's price elasticity of demand for nights spent in Italy?


A) 0.5
B) 6
C) 2
D) 0.667
E) 1.5

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