Homework Answers
Percentage change in price of Y = [(17-20)/(17+20)/2]100= (-3/18.5)100= -16.2%
Percentage change in quantity demanded of Y = [(118-110)/(110+118)/2]100= (8/114)100= 7.02%
Price elasticity of demand = (7.02/-16.2)= -0.43
Hence, the absolute value of price elasticity = 0.43.
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