What is the price elasticity of demand

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Reference no: EM131575825

Problem - The table below shows the weekly demand for machine screws at the local hardware store.

Demand for Machine Screws

Price (dollars per pack of 100 screws)

Quantity (packs of 100 screws)

$5.00

0

4.50

60

4.00

120

3.50

180

3.00

240

2.50

300

2.00

360

1.50

420

1.00

480

0.50

540

0.00

600

Instructions: Round your answers to 2 decimal places.

a. Using the regular percentage change method, what is the price elasticity of demand from a price of $4.50 to a price of $4.00 per pack of 100 screws?

b. Using the regular percentage change method, what is the price elasticity of demand from a price of $2.50 to a price of $2.00 per pack of 100 screws?

c. Using the regular percentage change method, what is the price elasticity of demand from a price of $1.00 to a price of $0.50 per pack of 100 screws?

Reference no: EM131575825

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