Rain spoils the strawberry crop, the price of strawberries rises from 2 to 4 a box, and the quantity demanded decreases from 1,400 to 1 ,000 boxes a week. Calculate the price elasticity of demand over this price range. Describe the demand for strawberries. Over the price range of 2 to 4 the price elasticity of demand is 2. >> Answer to 2 decimal places

To calculate the price elasticity of demand, we can use the following formula:<br /><br />Price Elasticity of Demand = (Percentage Change in Quantity Demanded) / (Percentage Change in Price)<br /><br />Given information:<br />- Initial price: $2 per box<br />- Final price: $4 per box<br />- Initial quantity demanded: 1,400 boxes per week<br />- Final quantity demanded: 1,000 boxes per week<br /><br />Step 1: Calculate the percentage change in quantity demanded.<br />Percentage Change in Quantity Demanded = (Final Quantity Demanded - Initial Quantity Demanded) / Initial Quantity Demanded × 100<br />Percentage Change in Quantity Demanded = (1,000 - 1,400) / 1,400 × 100 = -28.57%<br /><br />Step 2: Calculate the percentage change in price.<br />Percentage Change in Price = (Final Price - Initial Price) / Initial Price × 100<br />Percentage Change in Price = ($4 - $2) / $2 × 100 = 100%<br /><br />Step 3: Calculate the price elasticity of demand.<br />Price Elasticity of Demand = (Percentage Change in Quantity Demanded) / (Percentage Change in Price)<br />Price Elasticity of Demand = -28.57% / 100% = -0.29<br /><br />Therefore, the price elasticity of demand over the price range of $2 to $4 is -0.29.<br /><br />The demand for strawberries is inelastic, as the price elasticity of demand is less than 1 in absolute value. This means that the quantity demanded is relatively insensitive to changes in price.