contestada

Currently, the price of good W is $50 and the quantity demanded is 35,000 units. In past studies, the price elasticity of demand for W was found to be -0.25. If the price of W is expected to increase to $60, calculate the resulting expected number of units that will be demanded.

Respuesta :

The resulting change in the quantity demanded is a five percent decrease.

What is the elasticity of demand?

Elasticity of demand measures the percentage change in quantity demanded in relation to the percentage change in price.

Elasticity of demand = percentage change in quantity demanded /  percentage change in price.

percentage change in price = ($60 / $50) - 1 = 0.2 = 20%

percentage change in quantity demanded = -0.25 x 20% = -5%

To learn more about price elasticity of demand, please check: https://brainly.com/question/18850846

Otras preguntas