4. Assume that the price changed from P1 to P2. Compute for the point elasticity and determine the degree of elasticity: P1 = 25 P2 = 32   Q1 = 5 Q2 = 5.1   What is the Elasticity coefficient and Degree of Elasticity?

Economics: Private and Public Choice (MindTap Course List)
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Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
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Chapter20: Consumer Choice And Elasticity
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4. Assume that the price changed from P1 to P2. Compute for the point elasticity and determine the degree of elasticity:

P1 = 25

P2 = 32

 

Q1 = 5

Q2 = 5.1

 

What is the Elasticity coefficient and Degree of Elasticity?

 

Note: coefficient should be rounded off to two decimal places; Degree of Elasticity should be any of the following: Elastic, Inelastic, Unit Elastic, Perfectly Elastic, or Perfectly Inelastic.

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