The Price elasticity of demand is -3.
What is Price elasticity of demand?
The Price elasticity of demand shows the change in consumption of a product in relation to its change in its price.
% change in price = (10-8) / ((10+8)/2)
% change in price = 2/9
% change in price = 22.22
% change in quantity = (1-2) / ((2+1)/2)
% change in quantity = -66.67
Price elasticity of demand = % change in quantity/% change in price
Price elasticity of demand = -66.67/22.22
Price elasticity of demand = -3
Hence, the Price elasticity of demand is -3.
Therefore, the Option 2 is correct.
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