In this range of prices, the demand for the product is considered elastic. This is because the percentage change in quantity demanded (15 percent decrease) is greater than the percentage change in price (10 percent increase). An elastic demand indicates that consumers are responsive to price changes, leading to a significant drop in quantity demanded when prices rise.
Price elasticity of demand= percentage change in demand/percentage cgange in price 2 = % chnge in demand/10 % change in demand= 2*10 % change in demand= 20%
Unit elastic
When the percentage change in price is equal to the percentage change in quantity demanded then demand is said to be unit elastic. There are 3 kinds of price elasticity of demand.
yes
In this range of prices, the demand for the product is considered elastic. This is because the percentage change in quantity demanded (15 percent decrease) is greater than the percentage change in price (10 percent increase). An elastic demand indicates that consumers are responsive to price changes, leading to a significant drop in quantity demanded when prices rise.
No. For example, 500 increased by 10% = 550 Now, decreasing 550 by 10% results in: 495, not 500.
in equilibrium
Price elasticity of demand= percentage change in demand/percentage cgange in price 2 = % chnge in demand/10 % change in demand= 2*10 % change in demand= 20%
Elastic
Unit elastic
the discount
When the percentage change in price is equal to the percentage change in quantity demanded then demand is said to be unit elastic. There are 3 kinds of price elasticity of demand.
yes
25 percent
25 percent
2%.