To calculate the price elasticity of demand, we use the formula:

Elasticity = % Change in Quantity Demanded / % Change in Price

First, we need to find the percentage change in quantity demanded and the percentage change in price.

1. % Change in Quantity Demanded = (Final Quantity - Initial Quantity) / Initial Quantity * 100
= (1500 - 1000) / 1000 * 100
= 50%

2. % Change in Price = (Final Price - Initial Price) / Initial Price * 100
= (1.00 - 1.50) / 1.50 * 100
= -33.33%

Now, we can substitute these values into the elasticity formula:

Elasticity = 50% / -33.33% = -1.5

So, the price elasticity of demand for this product is approximately -1.5. This means that the product is elastic, and the quantity demanded is sensitive to changes in price.

Question

To calculate the price elasticity of demand, we use the formula:

Elasticity = % Change in Quantity Demanded / % Change in Price

First, we need to find the percentage change in quantity demanded and the percentage change in price.

1. % Change in Quantity Demanded = (Final Quantity - Initial Quantity) / Initial Quantity * 100
   = (1500 - 1000) / 1000 * 100
   = 50%

2. % Change in Price = (Final Price - Initial Price) / Initial Price * 100
   = (1.00 - 1.50) / 1.50 * 100
   = -33.33%

Now, we can substitute these values into the elasticity formula:

Elasticity = 50% / -33.33% = -1.5

So, the price elasticity of demand for this product is approximately -1.5. This means that the product is elastic, and the quantity demanded is sensitive to changes in price.

Knowee AI · Accepted Answer

To calculate the price elasticity of demand, we use the formula:

Elasticity = % Change in Quantity Demanded / % Change in Price

First, we need to find the percentage change in quantity demanded and the percentage change in price.

1. % Change in Quantity Demanded = (Final Quantity - Initial Quantity) / Initial Quantity * 100
   = (1500 - 1000) / 1000 * 100
   = 50%

2. % Change in Price = (Final Price - Initial Price) / Initial Price * 100
   = (1.00 - 1.50) / 1.50 * 100
   = -33.33%

Now, we can substitute these values into the elasticity formula:

Elasticity = 50% / -33.33% = -1.5

So, the price elasticity of demand for this product is approximately -1.5. This means that the product is elastic, and the quantity demanded is sensitive to changes in price.

The quantity of a good demanded rises from 1000 to 1500 units when the price falls from $1.50 to $1.00 per unit. The price elasticity of demand for this product is approximately:

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