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At point A on a demand curve, price is $10 and quantity demanded is 100. At point B, price is $12 and quantity demanded is 80. What does price elasticity of demand equal between points A and B

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eooyibo123

Answer:

Price elasticity of demand is -1

Explanation:

Price elasticity of demand is defined as the degree of responsiveness of quantity demanded to changes in the price of a product. It is calculated by finding ratio of percentage change in demand to percentage change in price.

Percentage change in demand= (80-100)/100= -20/100

Percentage change in demand= -0.2

Percentage change in price= (12-10)/10

Percentage change in price= 2/10= 0.2

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

Elasticity= -0.2/0.2= -1

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