Answer:
-13 ÷ 9
Explanation:
The computation of the price elasticity of demand is given below:
As we know that
Price elasticity of demand = % change in quantity demanded ÷ % change in price
So,
% change in quantity demanded is
= (6 units - 12 units) ÷ (6 units + 12 units) ÷ 2
= -6 units ÷ 9 units
= -2 ÷ 3
And,
% change in the price is
= ($8 - $5) ÷ ($8 + $5) ÷ 2
= $3 ÷ $6.5
Now the price elasticity of demand is
= ( -2 ÷ 3 ) ÷ (3 ÷ 6.5)
= -13 ÷ 9
