Calculation of price elasticity of demand.
Compute the price elasticity of demand for the product below using average values for the prices and quantities in your formula. Over the price range in question, is this demand schedule price inelastic, unitary elastic, or elastic? Is total revenue greater at the lower price or at the higher price?
Price (per unit)
|
Quantity demanded
|
$4
|
22
|
6
|
18 |