Answer:
-0.1635
Explanation:
Given that,
Initial price = $0.50
New price = $1
Initial quantity = 520,000
New quantity = 435,000
Percentage change in quantity demanded:
= (Change in quantity demanded ÷ Initial quantity) × 100
= [(435,000 - 520,000) ÷ 520,000] × 100
= (-85,000 ÷ 520,000) × 100
= -0.1635 × 100
= -16.35%
Percentage change in price:
= (Change in price ÷ Initial price) × 100
= [(1 - 0.50) ÷ 0.50] × 100
= (0.50 ÷ 0.50) × 100
= 1 × 100
= 100%
Elasticity of demand:
= Percentage change in quantity demanded ÷ Percentage change in price
= -16.35 ÷ 100
= -0.1635
