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Question 1

Suppose that a store reduces the price of laundry detergent from $4.5 to$3.5. As a result, quantity demanded increases from 220 to 250.

Using the point elasticity approach, calculate percentage change in price.

Hint

Question 2

Suppose that a store decreases the price of laundry detergent from $4.1 to$3.9. As a result, quantity demanded increases from 180 to 240.

Using the point elasticity approach, calculate price elasticity of demand.