suppose the increase of 37% in prices resulted in quantity demanded falling by 2%, calculate the price elasticity of dem

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answerhappygod
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suppose the increase of 37% in prices resulted in quantity demanded falling by 2%, calculate the price elasticity of dem

Post by answerhappygod »

suppose the increase of 37% in prices resulted in quantity
demanded falling by 2%, calculate the price elasticity of demand
and interpret your result. Percentage change in quantity/percentage
change in price 2/37=0.05 The amount smaller than one, showing that
the demand is inelastic.
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