Copyright

When the price of Product Z is decreased from SR20 to SR 10 the quantity demanded increases from...

Question:

When the price of Product Z is decreased from SR20 to SR 10 the quantity demanded increases from 100 units to 150 units .

A. Write the Formula for Price Elasticity of Demand

B. Calculate the price elasticity of demand for product Z?

C. Please give your inference about the elasticity of demand for this product

D. Name a Product that you think will have this Price Elasticity?

The Price Elasticity of Demand:

The price elasticity of demand for a good or service is a measure of how the consumers respond to changes in the price of the product. It is calculated by dividing the percentage change in the quantity demanded of the product to the percentage change in the price of the product. The demand can either be elastic, inelastic or unitary elastic.

Answer and Explanation:

Question A).

Write the Formula for Price Elasticity of Demand

The formula for the price elasticity of demand is given by:

{eq}E_d = \displaystyle...

See full answer below.

Become a Study.com member to unlock this answer! Create your account

View this answer

Learn more about this topic:

Loading...
Price Elasticity of Demand: Definition, Formula & Example

from Intro to Business: Help and Review

Chapter 3 / Lesson 54
22K

Related to this Question

Explore our homework questions and answers library