At Westonci.ca, we make it easy for you to get the answers you need from a community of knowledgeable individuals. Discover a wealth of knowledge from professionals across various disciplines on our user-friendly Q&A platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.
Sagot :
If the price elasticity of demand for a good is -0.40, then a 10 percent increase in price would result in: a. a 4.0 percent decrease in the quantity demanded.
What is price elasticity?
Price elasticity of demand is the term used to describe the relationship between the percentage change in a product's quantity sought and the percentage change in price. It aids economists in understanding how supply and demand vary in response to price changes in a given good. Many people are willing to pay more for Apple products because of how well-known the Apple brand is. Even if the price goes higher, many consumers will continue to buy Apple iPhones. If it were a lesser-known brand, like Dell laptops, you would assume demand to be price elastic. To calculate price elasticity, divide the change in supply (or demand) for a good, service, resource, or commodity by the change in price.
To learn more about price elasticity visit:
https://brainly.com/question/13565779
#SPJ4
Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.
