The price of a new computer game has demand of 3,000 units at $50 and 2,500 units at $60. calculate the price elasticity of demand rounded to two decimal places. which statements are correct?
(a) if the price decreases 10%, demand will decrease 10%.
(b) the demand is inelastic.
(c) if the price increases 10%, demand will decrease 10%.
(d) the demand is unitary elastic.
(e) if the price increases 10%, demand will increase 10%.

option D "The demand is unitary elastic."

Explanation:

Data provided:

At price, P1 = 3,000 units

Demand, D1 = $ 50

also,

at price P2 = $ 60

Demand, D2 = 2,500 units

Now,

the percentage change in price =

or

the percentage change in price = 20%

and,

The percentage change in the quantity =

or

The percentage change in the quantity = -20%

The elasticity in demand (Ed) is given as:

Ed = (Percentage change in quantity) / (Percentage change in price)

on substituting the values, we get

Ed = (-20%) / 20%

or

Ed = - 1

Here the negative sign depicts the inverse relation between the price and the demand.

hence, the correct answer is option D "The demand is unitary elastic."

drop shippers;

idk

explanation:

bc why nah