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 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 Demanded - Old Quantity Demanded) / Old Quantity Demanded * 100<br /><br />Percentage Change in Quantity Demanded = (1,000 - 1,400) / 1,400 * 100 = -28.57%<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 /><br />Percentage Change in Price = ($4 - $2) / $2 * 100 = 100%<br /><br />Now, we can calculate the price elasticity of demand:<br /><br />Price Elasticity of Demand = (-28.57%) / (100%) = -0.2857<br /><br />Rounding to 2 decimal places, the price elasticity of demand 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.