Question

Suppose that the quantity of chain saws sold increased from 200 to 400 when the price fell from $225 to $175. Over this price range, the absolute value of the price elasticity of demand for chain saws isa. 0.25.

b. 0.375.

c. 1.0.

d. 2.67.

e. 4.0.

Answer 1

D. 2.67 because that will be the absolute value of the price elasticity of demand for chain saws isa.