【每日一练】CFA 一级（2015年）

Question：

The price of a good falls from $15 to $13. Given this decline in price, the quantity demanded of the good rises from 100 units to 120 units. The arc price elasticity of demand for the good is closest to: 
A. 1.3.
B. 1.5.
C. 10.0.
 

Answer = A 
Arc price elasticity of demand is calculated as: %ΔQ/%ΔP = (ΔQ/Qavg) / (ΔP/Pavg).In this case, (20/110)/(2/14) = 1.27 rounded to 1.3. 

CFA Level I 
"Demand and Supply Analysis: Introduction," Richard V. Eastin and Gary L. Arbogast 
Section 4.1 

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