From the above, calculate the price elasticity of demand

Explanation

price elasticity of demand is calculated as the;

 percentage change in quantity demanded
         percentage change in price

Change in quantity = 500 - 400 = 100
% change  = ​​​​​​100/100 = 1%

Change in price = 70 - 50 = 20
% change = 20/100 = 0.2%

price elasticity = \(\frac{1}{0.2}\) = 5