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The elasticity coefficient is determined by looking at the percentage change in quantity divided by the percentage change in price. With that in mind, if the price of gasoline changes by 20% and there
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16 votes
16 votes
The elasticity coefficient is determined by looking at the percentage change in quantity divided by the percentage change in price. With that in mind, if the price of gasoline changes by 20% and there is a corresponding 10% change in quantity demanded, what is the elasticity coefficient

User Farris
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1 Answer

11 votes
11 votes

Answer:

Elasticity coefficient = 0.5

Step-by-step explanation:

Elasticity coefficient = percentage change in quantity demanded / percentage change in price

percentage change in price if gasoline = 20%

percentage change in quantity demanded = 10%

Elasticity coefficient = percentage change in quantity demanded / percentage change in price

= 10% / 20%

= 1/2

= 0.5

Elasticity coefficient = 0.5

User ILya Cyclone
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