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My name is Ann [436]
2 years ago
7

For product X, the price elasticity of demand has an absolute value of 3.5. This means that quantity demanded will increase by

Business
1 answer:
cluponka [151]2 years ago
5 0

It means that quantity demanded will increase by 3.5% for every 1% decrease in price.

<h3>What is the price elasticity of demand?</h3>

Price elasticity of demand measures the percentage change in quantity demanded when the price of the good.

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

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. When price increases, quantity demanded decreases by more of than the percentage change in price. When price increases, the quantity demanded declines.

To learn more about price elasticity of demand, please check: brainly.com/question/18850846

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Elina [12.6K]

Answer:

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3 years ago
How does income inequality affect American taxpayers
nikdorinn [45]
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3 years ago
Suppose three companies, Optimax, Megachug, and Thirstoid, dominate the sports drink market. Optimax enjoys the largest market s
mario62 [17]

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Non-price competition

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I hope my answer helps you

4 0
3 years ago
Henry conducted a survey on an ad done by his company. In the survey, he asked people to evaluate the ad and state whether they
GrogVix [38]
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6 0
3 years ago
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What is a stock exchange?
liraira [26]

Answer:

A. A place where investors can buy and sell different  investments.

Explanation:

A stock exchange is a place for the exchange of stocks in the market. In other words, it is a place where investors could 'meet' to buy or sell stocks, be it investments, company shares, or company securities.

A stock market, in simple words, is the marketplace for the buying and selling of investments, a trading place for buyers and sellers. So, a stock exchange is a transaction dealing with stocks, equities, or shares of the commercial world. And the transaction or exchange can only be done if the stock is listed on an exchange.

Thus, the correct answer is option A.

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3 years ago
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