What is the best estimate of the price elasticity of demand for salmon at Francesca's?

What is your best estimate of the price elasticity of demand for salmon at Francesca's?

The best estimate of the price elasticity of demand for salmon at Francesca's is approximately -1.25. The correct option is e. 1.25.

Calculation of Price Elasticity of Demand

To estimate the price elasticity of demand for salmon at Francesca's, we can use the midpoint formula: Price elasticity of demand = ((Q2 - Q1) / ((Q2 + Q1) / 2)) / ((P2 - P1) / ((P2 + P1) / 2)) Using the given information: Q1 = 30 plates Q2 = 18 plates P1 = $20 P2 = $30 Plugging these values into the formula: Price elasticity of demand = ((18 - 30) / ((18 + 30) / 2)) / (($30 - $20) / (($30 + $20) / 2)) Price elasticity of demand = ((-12) / (48 / 2)) / (10 / (50 / 2)) Price elasticity of demand = (-12 / 24) / (10 / 25) Price elasticity of demand = (-0.5) / (0.4) Price elasticity of demand ≈ -1.25 Therefore, The best estimate of the price elasticity of demand for salmon at Francesca's is approximately -1.25. The correct option is e. 1.25.
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