Answer:
Step-by-step explanation:
In response to the price rise from $50 to $60, the quantity demanded of product X drops from 400 to 300 units. We know that price elasticity of demand is a measure of the responsiveness of changes in demand as a result of a price change. Thus,
% change in price =

=
= 0.1818
% Change in Quantity demanded
=

=

= -0.2857
Thus,
Price elasticity of demand =

=

= -1.5715
Therefore, the price elasticity of demand = -1.5715