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When the price of a slice of pizza is $1.75, quantity demanded is 400. when the price per slice falls to $1.50, quantity demanded increases to 600. what is the absolute value of the price elasticity of demand?

User Juanmajmjr
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The absolute value of the price elasticity of demand is -3.5 based on the information shown in the question above. This problem can be solved using the elasticity formula which stated as Ed = ((Q1-Q0)/Q0)% / ((P1-P0)/P0)%. In this formula, Ed is the elasticity of demand, Q1 is the current quantity, Q0 is the previous quantity, P1 is the current price, and P0 is the previous price (Calculation: -3.5 = ((600-400)/400)% / ((1.5-1.75)/1.5)%).
User Aun
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