An october 24, 1996 article in the washington post dicussses the completion of a new private toll road between leesburg and washington dulles international airport. It states that daily revenue from tolls increased from $14000 to 22000 when the price to of the toll decreased from $1.75 to $1.00. What is the price elasticity of demand for the toll road? show calculations.
Again, elasticity is percentage change in Q divided by percentage change in P.