Westonci.ca is your go-to source for answers, with a community ready to provide accurate and timely information. Join our Q&A platform and get accurate answers to all your questions from professionals across multiple disciplines. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.
Sagot :
Answer: 2.67
Explanation:
since that will be the chain saw demand price elasticity in absolute terms, or isa.
When the price fell from $225 to $175, the sales increased from 200 to 400. The price elasticity of demand is 3.5
The price elasticity of demand measures how sensitive the change of quantity to the change of price.
Price elasticity of demand = % change in quantity / % change in price
In the given problem:
change in quantity = 400 - 200 = 200
% change in quantity = 200/200 = 100%
change in price = $175 - $225 = -$50
% change in price = 50 / 175 = 28.57%
Note that we always take the absolute or positive value when calculating the price elasticity.
Hence,
Price elasticity of demand = % change in quantity / % change in price
= 100% / 28.57% = 3.5
Learn more about price elasticity here:
https://brainly.com/question/24596748
#SPJ4
Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.