Which of the following can be used to calculate the price elasticity of demand?
A. \(\frac{\text{percentage change in quality demand}}{\text{percentage change in price}}\) B. \(\frac{\text{percentage change in price}}{\text{percentage change inquantity demand}}\) C. \(\frac{\text{percentage change in quality demand}}{\text{percentage change in income}}\) D. \(\frac{\text{percentage change in income}}{\text{percentage change in quantity demand}}\)
Correct Answer: A
Explanation
The price elasticity of demand is calculated as the; percentage change in quantity demanded divided by a percentage change in price
