Rain spoils the strawberry crop, the price of strawberries rises from 6 to 8 a box, and the quantity demanded decreases from 600 to 200 boxes a week. Calculate the price elasticity of demand over this price range. Describe the demand for strawberries. Over the price range of 6 to 8, the price elasticity of demand is square >>> 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 />First, let's calculate the percentage change in quantity demanded:<br /><br />Percentage change in quantity demanded = (New quantity - Old quantity) / Old quantity * 100<br />= (200 - 600) / 600 * 100<br />= -66.67%<br /><br />Next, let's calculate the percentage change in price:<br /><br />Percentage change in price = (New price - Old price) / Old price * 100<br />= (8 - 6) / 6 * 100<br />= 33.33%<br /><br />Now, we can calculate the price elasticity of demand:<br /><br />Price elasticity of demand = (-66.67%) / (33.33%)<br />= -2.00<br /><br />Therefore, the price elasticity of demand over this price range is -2.00.<br /><br />The negative value indicates that the demand for strawberries is elastic, meaning that the quantity demanded is relatively responsive to changes in price. In this case, a 1% increase in price leads to a 2% decrease in quantity demanded.