Answer:
The price elasticity of demand is -1.81.
Explanation:
At price level $9 the quantity demanded is 250.
At the price level $8, the quantity demanded is 300.
The price elasticity of demand will be
= [tex]\frac{Change\ in\ quantity\ demanded}{Change\ in\ price}[/tex]
= [tex]\frac{\frac{Q2-Q1}{Q1} }{\frac{P2-P1}{P1} }[/tex]
= [tex]\frac{\frac{300-250}{250} }{\frac{8-9}{9} }[/tex]
= [tex]\frac{\frac{50}{250} }{\frac{-1}{9} }[/tex]
= [tex]\frac{0.2}{-0.11}[/tex]
= -1.81
