PED: Change in Q / Change in price. So:
2 = Change in Q / 10
Change in Q = 20
The quantity demanded would fall by 20%. This is determined by multiplying the price increase (10%) by the price elasticity of demand (2), which gives 20%.
25 percent
25 percent
Price elasticity of demand is the responsiveness of quantity demanded of a good to a change in its price.Basically it describes how consumers react to a price change.The price elasticity of demand is calculated byPED= %Quantity demanded : % Change of Priceor in words: the percentage change in the quantity demanded divided by the percentage change in price
The responsiveness of quantity demanded to changes in the price of a good
responsiveness of a quantity demanded to a change in price
true
4.345
True
elasticity
by the formula : %changge in quantity demanded/% change in price of good
Price elasticity can be precisely measured by dividing the percentage change on quantity demanded by the percentage change in price that caused it. Thus e can measure price elasticity by using the formula Price elasticity = Percentage change in quantity demanded ÷ percentage change in price
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