Who ever says my real name gets brainiest
2 answers:
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Answer:
The price of elasticity of demand is 2.59
Step-by-step explanation:
*<em> Lets explain how to solve the problem</em>
- During the past year the price of a laptop computer fell from
$2950 to $2450
- During the same time period consumer sales increased from
430000 to 619000 laptops
- <em>We need to find the price of elasticity of demand</em>
- <u><em>The rule of price elasticity is:</em></u>
price elasticity = percentage of change in the quantity ÷
percentage of change in price
* <em>Lets calculate the percentage of change in quantity and the </em>
<em> percentage of chance in price</em>
∵ The percentage of increasing of quantity = (new - old)/old
∵ New = 619000 and old = 430000
∴ The percentage of increasing of quantity =
%
∵ The percentage of decreasing of price = (old - new)/old
∵ New = $2450 and old = $2950
∴ The percentage of decreasing of price =
%
- <em>Lets substitute these values in the equation above</em>
∴ Price of elasticity of demand = 43.95% ÷ 16.95% = 2.59
* The price of elasticity of demand is 2.59