Course: BUSI 1023 Introduction to Economics Topic: Elasticity Exercise 4-3: Price elasticity of demand Find the price elasticity of demand for the given product. Select one representative in your group and the representative will write the answer on the table drawn on the whiteboard. Price ($) Quantity demanded before after before after Product 1 1.00 1.20 4 3 Stage 1: Find mid-point of price and quantity demanded. Mid-point price = (Pbefore+ Pafter) 2 Mid-point quantity demanded = before+after) Stage 2: Find the percentage changes of price and quantity demanded. Price change (%) = (Pafter - Pbefore). - . 100% Mid-point price Quantity change (%) =; (Qafter -before) - . 100% Mid-point quantity Stage 3: Find the elasticity by dividing the quantity change (%) by the price change (%)