Suppose the Quantity Demanded of Ski Boats Falls from 4

question 23

Multiple Choice

Suppose the quantity demanded of ski boats falls from 4.0 million to 3.0 million as a result of an average price increase from $20,000 to $25,000 per boat.The absolute value of the price elasticity of demand is closest to

• A)0.20.
• B)1.29.
• C)0.78.
• D)0.29.