The price elasticity of demand of the pen will be -0.2.
<h3>How to compute the elasticity?</h3>
The demand and supply schedule will be:
Price Qd. Qs
$10. 250. 100
$20. 200. 90
$30. 180. 80
The price elasticity of demand from $1 to $2 will be:
= Percentage change in quantity demanded/percentage change in price
Percentage change in quantity demanded will be:
= (200 - 250)/250 × 100
= -20%
Percentage change in price will be:
= (20 - 10)/10 × 100
= 100%
Therefore, the elasticity of demand will be:
= -20/100
= - 0.2
The value gotten illustrates an inelastic demand.
In order to increase the total revenue, the price can be reduced as it will lead to more sales.
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<u>Complete question:</u>
Choose any product or service. Create the demand and supply schedule.
Calculate just one PED.
Is the demand elastic or inelastic?
What price change would you recommend to increase TR?
Answer:
2/6 - 1/6 = k
Step-by-step explanation:
C. Is the answer to this question
to solve for the dimensions (x+7)(x+2)=66,
we can first use the foiling method to simplify the left side.
x^2 + 2x + 7x + 14 = 66
x^2 + 9x + 14 = 66
now, subtract 66 from both sides.
x^2 + 9x - 52 = 0
now, split this into two parentheses.
(x + 13)(x - 4)
since the root of -13 would give you negative values, x=4. This means that the dimensions of the rectangle are 11 and 6.
