Exhibit 5-2 Price and Quantity Demanded Data -Using Exhibit 5-2, What Is the Price Elasticity of Demand

question 259

Multiple Choice

Exhibit 5-2 Price and quantity demanded data $$\begin{array} { | c | c | } \hline \text { Price } & \text { Quantity Demanded } \\\hline 5 & 20 \\4 & 25 \\3 & 30 \\2 & 35 \\1 & 40 \\\hline\end{array}$$
-Using Exhibit 5-2, what is the price elasticity of demand when the price falls from five dollars to four?

• A) 1.
• B) 1.25.
• C) 0.8.
• D) 2.0.
• E) 0.4.

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