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Answer:

The question is missing the graph as well as the options in the attached.

The elasticity of demand is 4,since the figure is greater than 1,demand is said to be elastic.

Unit elastic is not as elasticity is greater than 1

Explanation:

The formula starting point method for elasticity of demand is given as :-[(New quantity-Old quantity)/(New price-Old price)] *[Old price/Old quantity]

New price=$4.5

Old price=$4

From the graph quantity was 50 units at new price,100 units at old price

Elasticity of dd=-(50-100)/(4.5-4)*(4/100)=4

The formula has a negative sign because the relationship between price and quantity is inverse.

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chilljain33

The price elasticity of demand for the price of iced coffee changed to $4.50 from the previous price of $4.00 will be calculated as 1.

The calculation of price elasticity can be done by using the formula for price elasticity of demand and putting the given values in the formula for obtaining the values.

Price Elasticity of Demand.

  • The price elasticity of demand can be calculated using the following formula,

  • [tex]\rm Price\ Elasticity\ of\ Demand= \dfrac{Percentage\ Change\ in\ Quantity\ Demanded}{Percentage\ Change\ in\ Price}[/tex]

  • Now putting the given values after assuming that people consumed 100 units before price change and 50 units after the change in price, the values obtained will be,

  • [tex]\rm Price\ Elasticity\ of\ Demand= \dfrac{2}{2}\\\\\\\rm Price\ Elasticity\ of\ Demand= 1[/tex]

  • So, the price elasticity of demand that is derived is 1 which means that the change in price was exactly proportional to the change in quantity demanded.

Hence, the price elasticity of demand for iced coffee at new price of $4.50 and new quantity consumed 50 will be calculated as 1.

Learn more about Price Elasticity of Demand here:

https://brainly.com/question/13380594

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