Question

If the demand curve for a new brand of golf balls has the following two points on it, P1 = $15, Q1 = 1,200 and P2 = $25, Q2 = 800, which of the following statements is correct?
l) The price elasticity of demand is .8
ll) The price elasticity of demand is 2.0
lll) The price elasticity of demand is -1.5
lV) The demand is inelastic
V) The demand is elastic
A) Only III and IV are correct.
B) Only II and V are correct.
C) Only II is correct.
D) Only III and V are correct.
e) Only I and IV are correct.

Answer 1

Answer:

b only ll and V are correct.