Assume demand decreases by 3 percent, the absolute value of price elasticity of demand is 1,...
Homework Answers
Ed=%change in quantity demanded/%change in price.
Ed=1
Decrease in demand=3%
%change in price=%change in quantity demanded/Ed
%change in price=3%/1
%change in price=3%
Elasticity of supply has nothing to do with this question because price will change because of change in demand,and none of the answers are correct.
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Assume demand decreases by 3 percent, the absolute value of
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