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Temka [501]
2 years ago
9

When the price of apples is $1.00 each a local farmer sells 500 apples. When the farmer increases

Mathematics
1 answer:
Natasha_Volkova [10]2 years ago
3 0

Answer:

20%

10%

0.5

5%

Step-by-step 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  

Percentage change in price = (1.2/1) - 1 = 20%

Percentage change in quantity demanded = 450/500 - 1 = 10%

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