Question

Calculate the price elasticity of demand for Brenda's Bakeries Zucchini Bread when the price increases by 29%, and the quantity demanded changes by -54%.

a) -1.86
b) -0.70
c) -2.21
d) -3.00

Answer 1

The price elasticity of demand for Brenda's Bakeries Zucchini Bread is -1.86.

Step-by-step explanation:

The price elasticity of demand can be calculated using the formula: price elasticity of demand = % change in quantity demanded / % change in price. In this case, the price increases by 29% and the quantity demanded changes by -54%. Plugging in these values into the formula, we get -54% / 29% = -1.86. Therefore, the price elasticity of demand for Brenda's Bakeries Zucchini Bread is -1.86.