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24 May, 00:57

When the price of a product is increased 10 percent, the quantity demanded decreases 15 percent. The price-elasticity of demand coefficient for this product is

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  1. 24 May, 02:30
    0
    -1.5

    Explanation:

    The price-elasticity of demand coefficient for the product given in the question can be calculated using the below formula:

    Demand coefficient of product is:

    Percentage change in quantity demanded / Percentage change in price

    Percentage change in price = 10%

    Percentage change in quantity demanded = - 15%

    Demand coefficient of product=-15%/10% = - 1.5
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