Final answer:
The price elasticity of demand when the price is $29 per orange is 0.0172 or approximately 0.02.
Step-by-step explanation:
The formula for price elasticity of demand is: Ep = (dq/dp) x (p/q)
Given that the weekly sales of Honolulu Red Oranges are given by q = 1160 - 20p, we can find dq/dp by taking the derivative of q with respect to p:
dq/dp = -20
To find the price elasticity of demand when the price is $29 per orange, substitute p=29 into dq/dp:
Ep = (-20) x (29/(1160-20(29))) = -20/1160 = -0.0172
Since the price elasticity of demand is a negative number, we take the absolute value to find the magnitude:
Price Elasticity of Demand = 0.0172
Therefore, the correct answer is a. 0.25.