On the left below is elasticity of demand, in the middle is the present change i
ID: 1198922 • Letter: O
Question
On the left below is elasticity of demand, in the middle is the present change in Price and whether it went up or down; for questions 8-10 what is the % change in quantity demand and if it will Rise or Fall
Elasticity of Demand % change in price Quantity of demand will rise or fall
8) -3 rises 3% Change by what%
9) -30 falls 3% Change by what%
10) -0.9235 rises 1% Change by what%
Explanation / Answer
PEoD () = (% Change in Quantity Demanded)/(% Change in Price):
8) = Q / P
-3 = Q / 3
Q = (-3)*(3) = -9%.That the change in the quantity falls by 9%.
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9. -30 = Q / -3
Q = (-30)*(-3) = 90%. Change in the quantity rises by 90%.
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10. -0.9235 = Q / 1 =
Q = -0.9235%. Change in quantity decreases by 0.9235%.
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