If we move from 8 to 6, the elasticity of demand is_______
The elasticity of demand is calculated as the percentage change in quantity divided by the percentage change in price.
%Change in quantity = 12 - 10 = 2 Percentage change = 210 = 0.2
Change in price = 8 - 6 = 2 Percentage change = 28 = 0.25
Elasticity of demand = 0.20.25 = 0.8
