Ask Question
15 June, 10:15

1. When the price of good A increased from $90 to $110, the quantity demanded of

good A decreased from 350 units to 250 units.

a. What is the price elasticity of demand for good A?

b. Is the demand for A elastic or inelastic?

c. What is the effect on total revenue of this increase in price?

+5
Answers (1)
  1. 15 June, 13:47
    0
    A = 1.88

    B = Elastic demand

    C = Fall in turnover by $4,000

    Explanation:

    Elasticity demand is calculated with formula % change in demand / % change in price.

    It is elastic if the result is greater than 1, and inelastic if less than on.

    The turnover dropped from $31,500 to $27, 500
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “1. When the price of good A increased from $90 to $110, the quantity demanded of good A decreased from 350 units to 250 units. a. What is ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers