question the graph below represents the demand for good a. the numbers on the chart show the percent changes…

question the graph below represents the demand for good a. the numbers on the chart show the percent changes in price and quantity moving along the demand curve. the numbers below the solid horizontal lines indicate the percent change in quantity, while the numbers to the left of the dotted vertical lines indicate the percent change in price. horizontal = quantity, vertical = price. from point a to point b on the demand curve for good a, the price elasticity of demand is:

question the graph below represents the demand for good a. the numbers on the chart show the percent changes in price and quantity moving along the demand curve. the numbers below the solid horizontal lines indicate the percent change in quantity, while the numbers to the left of the dotted vertical lines indicate the percent change in price. horizontal = quantity, vertical = price. from point a to point b on the demand curve for good a, the price elasticity of demand is:

Answer

Explanation:

Step1: Recall price - elasticity formula

The formula for price elasticity of demand ($E_d$) is $E_d=\frac{%\text{ change in quantity demanded}}{%\text{ change in price}}$.

Step2: Identify relevant percentage - changes

From point A to point B, the percent change in quantity demanded is 35% and the percent change in price is 25%.

Step3: Calculate price - elasticity

$E_d=\frac{35%}{25%}=\frac{35}{25} = 1.4$

Answer:

1.4