Answer:
Price elasticity of demand = -0.1
Explanation:
Price elasticity of demand = % change in quantity demanded ÷ % change in price
% change in price = (difference in price ÷ the initial price) x 100
% change in price = (($2.00 - $1.00) ÷ $1.00) x 100
= 100 %
% change in quantity demanded = (difference in quantity demanded ÷ the quantity demanded) x 100
since quantity demanded fell it will be negative
% change in quantity demanded = ((90 - 100) ÷ 100) x 100
= - 10
Price elasticity of demand = - 10 ÷ 100
= -0.1
