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tia_tia [17]
3 years ago
7

If the price elasticity of demand for a product is equal to 0.5, then a 10 percent decrease in price will increase quantity dema

nded by:
Business
1 answer:
SashulF [63]3 years ago
4 0

Answer:

5%

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

0.5 = percentage change in quantity demanded /10%

percentage change in quantity demanded  = 10% X 0.5 = 5%

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.  

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

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded

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<h3>The VARK Model</h3>

Education continues to promote learning styles as a way for teachers to support students and differentiate lessons. The multiple models related to learning styles, the VARK model is among the most widely used since it sufficiently addresses learner diversity and needs.

The VARK model stands for:

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learn more about learning styles: brainly.com/question/3274282

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