Planet Company had operating income of $12,000, average operating assets of $125,000, and sales of $45,000. What is Planet's ret
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Answer:
Price elasticity of demand = 0.5
Explanation:
A price elasticity of demand can be defined as a measure of the responsiveness of the quantity of a product demanded with respect to a change in price of the product, all things being equal.
Mathematically, the price elasticity of demand is given by the formula;
<u>Given the following data;</u>
Old price = $200
New price = $250
Old quantity demanded = 450
New quantity demanded = 300
To find the price elasticity of demand (PED);
First of all, we would determine the percentage change in price and demand.
<em>Percentage change in price = 25%</em>
<em>Percentage change in demand = 50%</em>
Now, we can find the price elasticity of demand;
Substituting into the formula, we have;
<em>Price elasticity of demand = 0.5</em>
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<em>Therefore, the degree of elasticity is said to be inelastic because the price elasticity of demand (PED) is less than 1.</em>
Answer:
The answer is "1145.66".
Explanation:
Using formula:
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