Moving along a demand curve, quantity demanded decreases 8 percent when price in

Question

Moving along a demand curve, quantity demanded decreases 8 percent when price increases 10 percent.

a. The price elasticity of demand is calculated to be____________

b. Given the price elasticity calculated in part a, demand is ________ (elastic, inelastic, unitary elastic) along this portion of the demand curve.

c. For this interval of the demand, the percentage change in the quantity in absolute value is _______ (greater than, less than, equal to) the percentage change in price in absolute value.

Explanation / Answer

a). Price elasticity= -8/10 =-0.8

b).so it is elastic

c).less

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