The price of train travel increases from $10 to $11 and the demand for train travel falls from 1,000 tickets to 875 tickets. Using the point formula, what is the price elasticity of demand? a -1 b -12.5 C -1.25 d -0.5 e -0.75

The price of train travel increases from $10 to $11 and the demand for train travel falls from 1,000 tickets to 875 tickets. Using the point formula, what is the price elasticity of demand? a -1 b -12.5 C -1.25 d -0.5 e -0.75

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 25CTQ: Transatlantic air travel in business class has an estimated elasticity of demand of 0.62, while...

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Question

Typed and correct answer please. I

The price of train travel increases from $10 to $11 and the demand for train travel falls from
1,000 tickets to 875 tickets. Using the point formula, what is the price elasticity of demand?
a
-1
b
-12.5
C
-1.25
d
-0.5
e
-0.75

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