If the own-price elasticity of demand for a good is -0.6 and quantity demanded decreases by...

Question

Question

If the own-price elasticity of demand for a good is -0.6 and quantity demanded decreases by 30%, price must have... O Increas

business economics

Answer 1

Answer #1

Answer

price elasticity of demand =%change in quantity /%change in price

%change in price =%change in quantity/price elasticity of demand

=-30/(-0.6)

=50%

the price must have increased by 50%

Option 4

Answer 2

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