Discover a wealth of knowledge at Westonci.ca, where experts provide answers to your most pressing questions. Ask your questions and receive precise answers from experienced professionals across different disciplines. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.
Sagot :
Suppose the elasticity of demand for cereal is 1. If cereal increases in price by 25 percent, the percentage decrease in quantity demanded will be 25%.
What is the elasticity of demand?
- The quantity sought for a good is measured according to its price elasticity of demand.
- Almost all goods see a decrease in quantity demanded when prices rise, however certain goods experience this decrease more than others.
- When a price increases by 1% while all other factors remain constant, the price elasticity provides the percentage change in the quantity required.
- If the elasticity is 2, a 1% increase in price results in a 2% decrease in the amount demanded.
- Other elasticities gauge how changes in other factors affect the quantity needed
- For example - the income elasticity of demand for consumer income changes.
Suppose the elasticity of demand for cereal is 1. If cereal increases in price by 25 percent, the percentage decrease in quantity demanded will also be 25%.
Know more about price elasticity here:
https://brainly.com/question/24384825
#SPJ4
Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.
