Answer:
- 1.33
Explanation:
Given that,
Percentage change in the price of strawberries = 18 percent
Percentage change in the quantity demanded of strawberries = 24 percent
Percentage change in the quantity demanded of plums = 12 percent
Therefore,
Price elasticity of demand:
= Percentage change in the quantity demanded of strawberries ÷ Percentage change in the price level of strawberries
= 24 ÷ 18
= - 1.33
