John, the new marketing manager of Doc’s Cola recently
decided to increase the bottle of soda by 5 cents. He needs to calculate the
correct formula for the calculation of price elasticity of demand. Which
calculation below is the correct formula for price elasticity?
E = percent change in price/percent change in demand
E = percent change in demand/percent change in price
E = percent change in demand/percent change in supply
E = percent change in supply/percent change in demand