Jim saw a decrease in the quantity demanded for his firm's product from 8000 to 6000 units a week when he raised the price of the product from $200 to $250. What is Jim's own price elasticity of demand?

Jim's own price elasticity of demand is 1

Explanation:

Price elasticity is referred to as the effect on demand of a product or service with change in the price of that product or service. It is calculated as the ratio between the increase or decrease in demand with the increase or decrease in price.

we are provided with the following data;

Original quantity demanded = 8000 units

new quantity demanded = 6000 units

change in quantity demanded = 8000 - 6000 = 2000 units

Original price = $200

new price = $250

change in price = $250 - $200 = $50

Price elasticity of demand;

(change in quantity : original quantity) * (original price : change in price)

= (2000 : 8000) * (200 : 50)

= 0.25 * 4

= 1

Jim's own price elasticity of demand = 1