If price of bag of chips increases from $1.00 to $2.00 and the quantity demanded drops from 100 to 90, what does the price elasticity of demand equal

Price elasticity of demand = -0.1‬

Explanation:

Price elasticity of demand = % change in quantity demanded  ÷ % change in price

% change in price = (difference in price  ÷ the initial price) x 100

% change in price = (($2.00 - $1.00)  ÷ $1.00) x 100

                             = 100 %

% change in quantity demanded = (difference in quantity demanded  ÷ the quantity demanded) x 100

since quantity demanded fell it will be negative

% change in quantity demanded =  ((90 - 100)  ÷ 100) x 100

                                                     = - 10

Price elasticity of demand = - 10 ÷ 100

                                            = -0.1‬

answer; standing committee;