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liraira [26]
3 years ago
9

if the quanity demanded of soda decreases by 5 percent when the price of soda rises by 100 percent what is the price elasticity

of demand for soda
Mathematics
1 answer:
vodomira [7]3 years ago
6 0
Price elasticity of demand is calculated as the ratio of change in demand to the ratio of change in price. So if the demand changes -5% when the price changes 100%, the PED = -5% / 100% = -0.05. Most good have a PED < 0, since demand typically decreases when the price is increased.
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