Answer:
Price Elasticity of Demand 1
Explanation:
We are given the following data:
[tex]\left[\begin{array}{ccc}Price&Quantity\\0&0\\1&1\end{array}\right][/tex]
We solve for price elasticity which is the reaction to demand based on the price:
[tex]\frac{q_1-q_2}{\frac{q_1+q_2}{2}} \div\frac{p_1-p_2}{\frac{p_1+p_2}{2}}[/tex]
We post our values into the formula:
[tex]\frac{0-1}{\frac{0+1}{2}} \div \frac{0-1}{\frac{0+1}{2}}[/tex]
And solve for the price elasticity of demand
[tex]\frac{-1}{\frac{+1}{2}} \div \frac{-1}{\frac{+1}{2}}[/tex]
[tex]-0.5 \div -0.5[/tex]
Price Elasticity of Demand 1
