Average of the prices= ( p 1 + p 2 ) /2
P 1= 13
P 2 = 14
average of the prices= (13+ 14) / 2
= $13.5
average of the quantities demanded= (q 1+ q 2) / 2
Q 1= 600 units
Q 2= 500 units
average of the quantities demanded = 600+500 / 2
= 550 units
elasticity of demand can be calculated by using the following formula -:
(original quantity- new quantity / original quantity + new quantity) / (Original price- new price / original price + new price)
hence in this way
ED = [ (600-500)/ (600+500) ] / [ (13-14) / (13+14) ]
= [ 100/ 1100] / [ -1/ 27]
= 0.090 / - 0.037
= - 2.4
ANSWER- Price elasticity of demand = (- 2.4)
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