Price elasticity = -1.29. The answer is negative because of the negative relationship between the quantity demanded and price. In this case, P0 is the original price, and P1 is the new price, and Q0 is the original quantity sold and Q1 is the new quantity:

• P0 = 2,350
• P1 = 1,930
• Q0 = 436,000
• Q1 = 537,000

Fill in the appropriate quantities for the formula for price elasticity of demand

• % change in quantity demanded / % change in price
• = ((537,000 - 436,000) / 537,000) / ((1930 - 2350) / 2350)
• = - (0.2316 / 0.1787)
• = -1.29