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.

---

Definitions:

Multiple Sclerosis

A chronic autoimmune condition affecting the central nervous system, where the immune system attacks the protective covering of nerves, leading to impaired bodily functions.

Respiration

The biological process involving the inhalation of oxygen and the exhalation of carbon dioxide, essential for life.

Relay Station

An intermediate signal transfer point in a communication system, used to transmit information from one place to another.

Visual Reflexes

Reflex actions initiated by visual stimuli, involving rapid and involuntary responses to visual inputs.