If the price of a bicycle changes from N120 to N80 and quantity bought changes from 300 to 500 units, the elasticity of demand for bicycle is

IfeanyichukwuBen

4 years ago

please i think elasticity =%∆Q/%∆P
so the elasticity should be
%∆Q which is 500-300/300 ×100 =66.66
%∆P which is 120-80/120×100=33.33
E= 66.66/33.33=2.0//

IfeanyichukwuBen

3 years ago

Please I think Elasticity= %∆Q/%∆P
So the elasticity of demand for the bicycle should be.
500-300/300 ×100/1=66.66 %∆Q
120-80/120×100/1=33.33%∆P
= 66.66/33.33= 2.0//
Option D.

Temidayoofoyo

3 years ago

Your answer is 0.2
but you chose option D which is 2!