a. What is the price elasticity of demand along the range of the demand curve between a price of ​$0.80 and quantity of 10 per miniburger and a price of ​$0.40 and quantity of 80 per​ miniburger?

Answer 1

In order to calculate the price elasticity of demand, we need to use the following formula:

Price elasticity of demand = % change in quantity demanded / % change in price

First, we can calculate the % change in quantity demanded:

% change in quantity demanded = (change in quantity demanded / initial quantity demanded) * 100
= ((80 - 10) / 10) * 100
= (70 / 10) * 100
= 700%

Next, we can calculate the % change in price:

% change in price = (change in price / initial price) * 100
= ((0.40 - 0.80) / 0.80) * 100
= (-0.40 / 0.80) * 100
= -50%

Now we can plug these values into the price elasticity of demand formula:

Price elasticity of demand = 700% / (-50%)
= -14

Therefore, the price elasticity of demand along this range of the demand curve is -14.