Absolute value of the price elasticity of demand

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When supply decreases, we expect equilibrium price to ________ and equilibrium quantity to _______.

Suppose Demand is given by Q = 100 -5P. What is the price elasticity of demand when P = 10?

-1/2

-5

-2

-1/5

None of these

When the price of a slice of pizza is $1.75, quantity demanded is 400. When the price per slice falls to $1.50, quantity demanded increases to 600. What is the absolute value of the price elasticity of demand?

2.60

0.384

0.20

0.076

Reference no: EM132066270

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