Question: price elasticity of demand price elasticity of demand formula ed...
Price Elasticity of Demand
Price elasticity of demand formula: ED= Q2 - Q1/(Q2 + Q1)/2 divided by P2 - P1/(P2 + P1)/2 (remember that price elasticity measures how the price change of a good effects the demand for that good)
Solve the following problem: A local grocer charges $4 each for watermelons, and sold 200 that week. The following week she raised the price to $6 each and only sold 75. Provide your answer, and indicate if your number showed elasticity, unitary elasticity, or was inelastic.