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When the price increases by 20% and the quantity demanded drops by 20% the price elasticity of demand is?
If the percent change in a good's price is offset by an equal percent change in the quantity demanded, economists would label the demand for that good as unit elastic. So if a price of a good increases by 20 percent and the quantity demanded decreases by 20 percent, the demand for that good is considered unit elastic.
When a 30% change in price causes 10% change in quantity demanded then the elasticity is?
Inelastic demand occurs when changes in price cause a disproportionately small change in quantity demanded. For example, a good with inelastic demand might see its price increase by 30%, but demand falls by only 10% as a result.
When a 10% change in price leads to more than 10% change in quantity demanded we say demand is?
perfectly elastic demand
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When price increases by 10% and demand decrease by 15% What will be the price elasticity of demand?
Answer and Explanation:
In this question, the percentage change in quantity demanded is 10%, and the percentage change in price is 15%. So, the implied price elasticity of demand = 10% / 15% = 0.67.