Question

f the price elasticity of demand for volleyballs is 1.20, a 15 percent increase in the price will result in

Answer 1

A 15 percent increase in the price will result in 18% decrease in quantity demanded.

What is Price Elasticity Of  Demand?

Price elasticity of demand  is defined as the the change in the rate  of consumption of a particular product with respect   to the change in its price. It is given as is the ratio of the percentage change in the  quantity demanded of a product to the percentage change in price.

Simply put;

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

$pEd$ =$\frac{percentage change in quantity}{percentage change in price, }$ ; $pEd$ =$\frac{Qd}{Pd }$

We were given that

• Price Elasticity of demand; pEd  1.20

• Increase in the price ; 15%

Plugging in our values, we have that

1.20 =$\frac{Qd}{0.15}$

Percentage change in quantity demanded$Qd$  =0.18   =18%

Therefore, A  15 percent increase in the price will  result to an  18% decrease in quantity demanded.

learn more about calculation on Price Elasticity Of  Demand://brainly.com/question/24903676