Hi

Can please someone help me how we get the price elasticity (1.67)?

Side 839 The formula for the Price Elasticity of Demand is: % Change in Quantity Demanded % Change in Price Price Elasticity of Demand coefficient - 550 500 450 Price reduced from 2350 to 250 % change in prices 29% % change in demand 100% Price elasticity 1.67 ie. demand is price elastic Figure 822 Price elasticity 6 400 350 S 300 & 250 200 150 100 50 of demand for a relatively elastic product Quantity demanded (000s) Elastic (coefficient of price elasticity > 1). a small percentage increase in price leads to a reduction in revenue Windows