Enable text based alternatives for graph display and drawing entry

Try Another Version of These Questions

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.

Your answer should be expressed in absolute value terms.

 

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.

Your answer should be expressed in absolute value terms.

 

Hint