Answer:
The price elasticity of ground beef is -1.65.
Explanation:
At the price level, $5 the quantity demanded is 9,000.
A decline in the price to $4 leads to an increase in the quantity demanded at 12,000.
The price elasticity of demand will be
= [tex]\frac{Change\ in\ quantity\ demanded}{Change\ in\ price}[/tex]
= [tex]\frac{\frac{Q2-Q1}{Q1} }{\frac{P2-P1}{P1} }[/tex]
= [tex]\frac{\frac{12,000-9,000}{9,000} }{\frac{4-5}{5} }[/tex]
= [tex]\frac{\frac{3,000}{9,000} }{\frac{-1}{5} }[/tex]
= [tex]\frac{0.33}{-0.2}[/tex]
= -1.65
