Answered

Welcome to Westonci.ca, the ultimate question and answer platform. Get expert answers to your questions quickly and accurately. Ask your questions and receive precise answers from experienced professionals across different disciplines. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

Suppose that when the price of milk rises 20%, the quantity demanded of milk falls 10%. Based on this information, what is the approximate absolute price elasticity of demand for milk

Sagot :

abiolataiwo2015

Answer:

0.5

Explanation:

Calculation for what is the approximate absolute price elasticity of demand for milk

Using this formula

Price elasticity of demand=Quantity demanded/ Increase in price

Let plug in the formula

Price elasticity of demand=10%/20%

Price elasticity of demand=0.5

Therefore the approximate absolute price elasticity of demand for milk will be 0.5

Thank you for trusting us with your questions. We're here to help you find accurate answers quickly and efficiently. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.