单选题 George's Appliance Center sells big screen televisions. On a representative model, when the price was reduced from $ 2450 to $ 2275, monthly demand increased from 175 to 211 units. What is the price elasticity of demand?
  • A. -2.14.
  • B. -1.69.
  • C. -2.53.
【正确答案】 C
【答案解析】Price elasticity of demand = % change in quantity demanded/% change in price % change in quantity =(211-175)/[(211+175)/2]=0.187 % change in price =(2275-2450)/[(2275+2450)/2]=-0.074 Price elasticity of demand =0.187/(-0.074)=-2.53