Price Quantity demanded dollar pero tak pery 20 30 35 25 Using the data in the...

Question

Question

Price Quantity demanded dollar pero tak pery 20 30 35 25 Using the data in the table above, the demand for skirts is OA perfe

business economics

Answer 1

Answer #1

the elasticity of demand = (change in quantity/change in price)*(initial price/ initial quantity)

= (25-30/35-20)*(20/30)

= (-5/15)*(20/30)

= - 0.22

Since the elasticity is >-1, the demand is inelastic

Thus, the answer is (c)

All other options are incorrect as they show a wrong classification of elasticity.

Answer 2

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