Price elasticity of demand for a good is -0.75. Calculate the percentage fall in its price that will result in a 15 per cent rise in its demand.

Abraham Banks

Abraham Banks

Answered question

2022-12-29

Price elasticity of demand for a good is -0.75. Calculate the percentage fall in its price that will result in a 15 per cent rise in its demand.

Answer & Explanation

Kaylee Howard

Kaylee Howard

Beginner2022-12-30Added 7 answers

(Ed)=Percentage change in quantity demanded / Percentage change in price=−0.75=15% . Percentage change in price
Percentage change in price =15%.−0.75
Percentage change in price =−20%
Percentage fall in price =20%

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