contestada

If the price elasticity of demand for a good is 0.8, then a 12 percent increase in the quantity demanded must be the result of a.
a 9.6 percent decrease in the price.
b. a 15 percent decrease in the price.
c. a 1.5 percent decrease in the price.
d. a 0.06 percent decrease in the price.

Respuesta :

TomShelby

Answer:

b. a 15 percent decrease in the price.

Explanation:

[tex]\frac{\, dQ/Q}{\, dP/P} = Price \: Elasticity[/tex]

Differential in quantity / differential in price

0.12 Demand /X Price = 0.8

X supply  = 0.12 / 0.8

price = 0.15

Otras preguntas