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 arc 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】

Arc price elasticity of demand is calculated as: %ΔQ/%Δp = (ΔQ/Q_avg) / (ΔP/P_avg).
In this case, (20/110)/(2/14) = 1.27 rounded to 1.3.