Asked by katherine alvarez on Jul 04, 2024
Verified
If the price of calculators increases by 15% and the quantity demanded per week falls by 45% as a result, then the price elasticity of demand is 3.
Quantity Demanded
The specific amount of a product that buyers are willing and able to purchase at a given price.
- Master the understanding and calculation process for the price elasticity of demand.
Verified Answer
JC
JKube CloudJul 07, 2024
Final Answer :
True
Explanation :
The price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price, which in this case is -45% / 15% = -3.
Learning Objectives
- Master the understanding and calculation process for the price elasticity of demand.