Welcome to Westonci.ca, the Q&A platform where your questions are met with detailed answers from experienced experts. Discover solutions to your questions from experienced professionals across multiple fields on our comprehensive Q&A platform. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.
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
Thank you for visiting our platform. We hope you found the answers you were looking for. Come back anytime you need more information. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.
