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Harrizon [31]
3 years ago
15

When price = $33, quantity demanded = 460. When price = $31, quantity demanded = 500. The price elasticity of demand is ________

_______, making this an _____________ good in the price range between $31 and $33.
A. 1.33; inelastic
B. 1.33; elastic
C. 0.75; elastic
D. 0.75; inelastic
E. 6,2; elastic
Business
1 answer:
notsponge [240]3 years ago
7 0

Answer:

  • PED = 1.33
  • elastic good

Explanation:

to calculate the price elasticity of demand (PED) using the midpoint method = {(500 - 460) / [(460 + 500)/2]} / {(31 - 33) / [(31 + 33)/2]} = (40 / 480) / (2 / 32) = 0.0833 / 0.0625 = 1.33

when the PED > 1, elastic

when the PED < 1, inelastic

when the PED = 1, unitary

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