Answer:
0.24
Explanation:
PLT restaurant sold 2500 lunch boxes for $10 last month
This month they sold increase price by $5 and sold 2,200 boxes
The first step is to calculate the percentage change in quantity
= 2500-2000/2500 × 100
= 300/2500 × 100
= 0.12 × 100
= 12%
The percentage change in price can be calculated as follows
= 10-5/10 × 100
= 5/10 × 100
= 0.5 × 100
= 50%
Therefore the price elasticity of demand can be calculated as follows
= 12%/50%
= 0.24
