Discover the answers to your questions at Westonci.ca, where experts share their knowledge and insights with you. Get detailed and precise answers to your questions from a dedicated community of experts on our Q&A platform. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.
Sagot :
Answer:
the coefficient of elasticity is 0.5. Thus, demand is inelastic.
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Price elasticity = 2/4 = 0.5
Because demand is less than1, big g has an inelastic demand.
We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.
