If elasticity for a product is 2 and demand increases by 10 percent, what was the percent price change for this product?...
If elasticity for a product is 2 and demand increases by 10 percent, what was the percent price change for this product?
Homework Answers
Ed=%change in quantity demanded/%change in price
%change in price=10/2=5%
Price falls by 5% since price and quantity demanded are inversely related
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If elasticity for a product is 2 and demand increases by 10 percent, what was the percent price change for this product?...
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