Asked by
Rezan Yusuf
on Nov 25, 2024
Verified
When the price of a product is increased 5 percent, the quantity demanded decreases 2 percent. The price-elasticity-of-demand coefficient for this product is
A) 0.4.
B) 4.
C) 2.5.
D) 25.
Price-elasticity-of-demand Coefficient
A measure that calculates the responsiveness of the quantity demanded of a good to a change in its price.
- Acquire knowledge on the idea of price elasticity of demand and its influence on revenue.
- Explore the relationship between price fluctuations and quantity demanded by considering the elasticity coefficient.
Verified Answer
PN
Learning Objectives
- Acquire knowledge on the idea of price elasticity of demand and its influence on revenue.
- Explore the relationship between price fluctuations and quantity demanded by considering the elasticity coefficient.