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ELEN [110]
3 years ago
15

11. Find out price elasticity of demand from the following table:

Mathematics
1 answer:
klio [65]3 years ago
4 0

Answer:

Price elasticity of demand = 1

Step-by-step explanation:

Old quantity demanded = 200

New quantity demanded = 150

Old price = 8

New price = 10

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

percentage change in quantity demanded = change in quantity demand / old demand × 100

= 50/200 × 100

= 0.25 × 100

= 25%

percentage change in price = change in price / old price × 100

= 2/8 × 100

= 0.25 × 100

= 25%

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

= 25% / 25%

= 1

Price elasticity of demand = 1

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