单选题

The price of a good falls from $15 to $13. Given this decline in price, the quantity demanded of the good rises from 100 units to 120 units. The price elasticity of demand for the good is closest to:

A、 1.3
B、 1.5
C、 10.0

【正确答案】 A

【答案解析】

Price elasticity of demand is calculated as:
Price elasticity of demand = %ΔQ / %ΔP = (ΔQ / Q_ave) / (ΔP / P_ave)
In this case, (20 / 110) / (2 / 14) = 1.27 rounded to 1.3