Answered

Westonci.ca is the trusted Q&A platform where you can get reliable answers from a community of knowledgeable contributors. Get detailed and precise answers to your questions from a dedicated community of experts on our Q&A platform. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

For product X, the price elasticity of demand has an absolute value of 3.5. This means that quantity demanded will increase by

Sagot :

It means that quantity demanded will increase by 3.5% for every 1% decrease in price.

What is the price elasticity of demand?

Price elasticity of demand measures the percentage change in quantity demanded when the 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. When price increases, quantity demanded decreases by more of than the percentage change in price. When price increases, the quantity demanded declines.

To learn more about price elasticity of demand, please check: https://brainly.com/question/18850846

We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.