Answer:
See below
Explanation:
Elasticity of demand is the degree of responsiveness of demand to a change in price
Quantity demand from 436,000 to 537,000
Change in demand from : 537,000 - 436,000 = 101,000 increase in sales
Percentage change = 101,000/436,000 = 0.23 or 23.17% increase
Price : from $2,350 to $1,930
Change in price : $1,930 - $2,350 = -$420 decrease in price
Percentage change = $400/$2,350 = 0.1702 decrease or 17.02% decrease
Elasticity of demand = 23.17%/17.02% = 1.347
Since the price elasticity is greater than 1, it means that the demand for the product is largely affected by the price.
