Answer: The Price Elasticity of demand is Inelastic at 0.05
Explanation: Elasticity of demand is the degree of responsiveness of price to quantity demanded.
Using the equation; Q= 17-2P+3P/S
Where P = $0.60; P/S = $2.40
Q = 17 - 2 (0.60) + 3 (2.40)
= 17 - 1.20 + 7.20 = 23
Price elasticity of demand at Price = $0.60 is change in price x Price/ quantity
Therefore; -2 × 0.6/23 = -0.05
Using absolute value, the Price elasticity = 0.05
This is inelastic because demand is less than 1.