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Delicious77 [7]
3 years ago
7

This is a economics question

Social Studies
1 answer:
const2013 [10]3 years ago
6 0

Answer:

2.12

Explanation:

PED = % Change in Quantity demanded / % Change in price

✔️Price when quantify demanded was 8:

Substitute Q = 8 into P = 50 - 2Q

Thus:

P = 50 - 2(8)

P = 50 - 16

P = 34

✔️Price when quantify demanded was 12:

Substitute Q = 12 into P = 50 - 2Q

Thus:

P = 50 - 2(12)

P = 50 - 24

P = 26

✔️% change in price = (old price - new price)/old price × 100

Old price = 34

New price = 26

% change in price = (34 - 26)/34 × 100 ≈ 23.53 (2 d.p)

✔️% change in quantity demanded = (old quantity - new quantity)/old quantity × 100

Old quantity = 8

New quantity = 12

% change in quanty demanded = (8-12)/12 × 100 = 50%

✔️ Elasticity (PED) = 50/23.53 = 2.12 (2 d.p)

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