Suppose you are told demand is inelastic. Which of the following COULD be the value for own price elasticity of demand?

1. 0.1
2. 0.5.
3. 1.5

Suppose when price decreases from $14 to $10, quantity demanded increases from 16 units to 20 units. Calculate own-price elasticity of demand using the midpoint formula.

A) 1

B) 3/2

C) 2/3

D) None of the above

Suppose when price increases from $3 to $9, quantity demanded decreases from 18 units to 10 units. Calculate own-price elasticity of demand using the midpoint formula.

A) 4/7

B) 2/7

C) 6/7

D) None of the above

Suppose a 15% decrease in price leads to a 45% increase in quantity demanded. Calculate own-price elasticity of demand.

A) 1.5

B) 1/3

C) 3.2

D) 3