单选题
Assume that for the average consumer, the quantity demanded for jeans
increases from 5 to 7 pairs per year in response to a price decrease from $ 29
to $ 24 per pair. The price elasticity and relative elasticity of demand for
jeans is best described by which of the following?
Price elasticity of demand Relative
elasticity
①A. -1.77
Relatively
inelastic
②B. -2.32
Relatively
elastic
③C. -1.77
Relatively
elastic
【正确答案】
C
【答案解析】The percentage change in quantity demanded is (7-5)/[(7+5)/2]=33.33 % and the percentage change in price is (24-29)/[(24+29)/2]=-18.87%. Thus, price elasticity =33.33%/(-18.87%)=-1.77.
A good is considered to be elastic if the absolute value of price elasticity is greater than 1. In this case, the absolute value of the price elasticity of demand for jeans is 1.77, so the price elasticity for jeans is relatively elastic.