The correct answer is the following.
When going from a price of $160 per unit to a price of $140 per unit, the price elasticity of demand for GPS units is -2.33.
The proper calculation is the following. (80-120)/120= -0.334
(160-140)/140= 0.1429=-0.334/0.1429=-2.33.
When we refer to the economic term "price elasticity," we considered it as the change in the quantity demanded of a good and the change it presents in its price. This concept refers to the sensitivity of the price's product. Its formula to calculate the Price Elasticity of Demand is % change in Quantity Demanded / % change in price.