Homework Answers
Since the elasticity of demand can be defined as the measurement of the degree of the responsiveness of the quantity demand due to the change in the price level.
% change in the quantity demand for smartphones=-2%
Ed=10
Ed= % change in the quantity demand / % change in the price
10= 2% / % change in the price
% change in the price=2%/10
=0.2%
Percentage increase in the price of smartphones =0.2%
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