Price Elasticity Requires Quantity Data

Steps:

• Recall PED formula: absolute value of (%ΔQd / %ΔP), where %ΔQd is percentage change in quantity demanded and %ΔP is percentage change in price.
• Identify given data: price changes from $1 to$1.5 (50% increase), but no initial or final quantity demanded provided.
• Note that without quantity data, %ΔQd cannot be calculated.
• Conclude that PED value cannot be determined.

Why C is correct:

• Not applicable; insufficient data prevents confirming elasticity magnitude.

Why the others are wrong:

• A: Zero elasticity implies no quantity response, but unverifiable without data.
• B: Inelastic demand (<1) is possible for staples like rice, but cannot confirm.
• D: Incomplete option provides no valid choice.

Not enough information. Final answer: Not enough information.