If an Increase in the Price of a Product from $1

Multiple Choice

If an increase in the price of a product from $1 to $2 per unit leads to a decrease in the quantity demanded from 100 to 80 units, then according to the averaging equation, the value of price elasticity of demand in absolute terms is:

A) 0.33.
B) 2.33.
C) 0.25.
D) 3.