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maks197457 [2]
3 years ago
12

If the price of a slice of pizza rises from $2.50 to $3, and quantity demanded falls from 10,000 slices to 7,400 slices, using t

he formula for arc price elasticity what is the percentage change in quantity?
A) -18.18%
B) -29.89%
C) -26%
D) -35.14%
Business
1 answer:
GenaCL600 [577]3 years ago
8 0

Answer:

(C) -26%

Explanation:

Initial quantity of pizzas demanded = 10,000 slices

New quantity of pizzas demanded = 7,400 slices

Change in quantity of pizzas demanded = new quantity demanded - initial quantity demanded = 7,400 - 10,000 = -2,600 slices

Percentage change in quantity demanded = (change in quantity of pizzas demanded ÷ initial quantity of pizzas demanded) × 100 = (-2600 ÷ 10,000) × 100 = -0.26 × 100 = -26%

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