Question 2.19: When the price of a product is lowered from £350 to £200 qua......

Price fall is £150 and quantity rise is 150. Therefore using the concept of arc elasticity

e  =  \frac{\frac{150}{600  +  750 } }{\frac{150}{350  +  200 }}  =  \frac{\frac{150}{1,350}}{\frac{150}{550 }}  =  \frac{150}{1,350} \times \frac{550}{150}  =  \frac{1}{27} \times \frac{11}{1}  =  \frac{11}{27}