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When the local grocery store puts peanut butter on sale, reducing its price from $4.30 per item to $3.50 per item, the quantity sold increases from 200 per week to 240 per week.
1. Using the midpoint formula. Calculate the percentage change in quantity demanded by plugging in the numbers for Q1 and Q2. (enter the percentage amount, add one decimal place, no percent sign)
2. Now plug in the numbers for P1 and P2 to calculate the percentage change in price (enter the percent, add one decimal place, no percent sign)
3. Using the whole formula, calculate the value of the price elasticity of demand for peanut butter (use absolute value and round to one decimal)
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