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cluponka [151]
3 years ago
8

According to​ Duffy-Deno (2003), when the price of broadband access capacity​ (the amount of information one can send over an in

ternet​ connection) increases​ 10%, commercial customers buy about​ 3.8% less capacity.
What is the elasticity of demand for broadband access capacity for​ firms?
Business
1 answer:
mihalych1998 [28]3 years ago
5 0

Answer:

Price Elasticity of 'Broadband Access Capacity' Demand (for firms) = 0.38

Explanation:

Price Elasticity of demand = % change in demand / % change in price

% change in demand = 3.8% ;  % change in price = 10%  [Given]

Putting in above formula ; P.Ed = 3.8 / 10 = 0.38

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