Question

At​ Roy's Music​ Shack, when the price of CDs is

​$13

​,

800

are demanded.

When the price of CDs is

​$14

​,

600

are demanded.

Using the averages of the two prices and​ quantities, the price elasticity of demand for CDs is

nothing

.

​(Round

your answer to one decimal​ place, and express your answer in absolute

value.​)

Answer 1

3.9

Step-by-step explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Elasticity of demand = percentage change in quantity / percentage change in price

Elasticity of demand = (14+13) / (800+600) x (600-800) / (14-13) = 3.9

Demand is elastic.

I hope my answer helps you.