If the price of a slice of pizza rises from $2.50 to $3, and quantity demanded falls from 10,000 slices to 7,400 slices, using the formula for arc price elasticity what is the percentage change in quantity?

A) - 18.18%

B) - 29.89%

C) - 26%

D) - 35.14%

(C) - 26%

Explanation:

Initial quantity of pizzas demanded = 10,000 slices

New quantity of pizzas demanded = 7,400 slices

Change in quantity of pizzas demanded = new quantity demanded - initial quantity demanded = 7,400 - 10,000 = - 2,600 slices

Percentage change in quantity demanded = (change in quantity of pizzas demanded : initial quantity of pizzas demanded) * 100 = (-2600 : 10,000) * 100 = - 0.26 * 100 = - 26%