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Masteriza [31]
3 years ago
15

When the price increases by 30% and the quantity demanded drops by 10%, the price elasticity of demand is: quizet

Business
1 answer:
Nataly [62]3 years ago
8 0

Answer:

0.33 inelastic

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

10% / 30% = 0.33

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one .

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