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1 year ago

Consider Nibbles, a very specialized brand of parakeet chow.

Mathematics

1 answer:

Orlov [11]1 year ago

3 0

The price elasticity of demand for the parakeet chow is 1.33.

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

Price elasticity of demand is the change in product quantity demanded to change in price.

From the question:

$\%\ Change\ in \ quantity=\frac{30000-40000}{30000}= -33.3\%\\\\\%\ Change\ in \ price=\frac{20-16}{16}= 25\%\\\\PED=|\frac{\%\ Change\ in \ quantity}{\%\ Change\ in \ price} |=|\frac{-33.3\%}{25\%}|=1.33$

The price elasticity of demand for the parakeet chow is 1.33.

Find out more on elasticity of demand at: brainly.com/question/24384825

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