Answer:
a. -1.5
Explanation:
The computation of the price elasticity of demand is shown below:
As we know that
Price elasticity of demand = E ÷ 1 + E × MC
E ÷ 1 + E × (3)
3 + 3E = E
3E - E = -3
2E = -3
E= -3/2
E = -1.5
Hence, the price elasticity of demand is -1.5
Therefore the correct option is a.
We simply applied the above formula so that the correct value could come
And, the same is to be considered
