Answer: a. 2
Explanation:
When the price is $8, the coordinates are (2,8)
When the price is $4, the coordinates are (10,4)
The number above represent the change in quantity demanded as a result of a change in price.
The elasticity can then be calculated using the Midpoint formula;
[tex]= \frac{Change in Quantity}{Change in Price} \\\\Change in Quantity = \frac{Q2 - Q1}{\frac{Q2 + Q1}{2} } \\\\= \frac{10 - 2}{\frac{10 + 2}{2} } \\\\= 1.3333\\\\Change in Price = \frac{P2 - P1}{\frac{P2 + P1}{2} }\\\\= \frac{4 - 8}{\frac{8 + 4}{2} }\\\\= -4/6\\\\Elasticity = 1.333/(-4/6)\\\\= -1.9995\\= -2[/tex]
Absolute value of -2 = 2
