Websi When the price of a good increased by 10 percent, the quantity demanded of

Question

Websi When the price of a good increased by 10 percent, the quantity demanded of it decreased 2 percent. edu create ks cite The price elasticity of demand is A price rise will total revenue. ne dar OA 5.00; decrease ouTu OB. 0.20, decrease O C. 5.00; increase OD, 0.20; increase OE. 1.00, decrease An example of a good with such a demand is O A. theater tickets tmail.c asquez lery by th lyricst O B. clothing mp3? vorite O C. orange juice s mp3 Click to select your answer 01/08/18A ASSESS Chapter 12 Quiz 25 MacBook Air

Explanation / Answer

Answer:- Price Elasticity = Percentage change in quantity demanded / percentage change in price

Price Elasticity = -2/10 = -0.2

As the elasticity is negative, thus it represents the elastic demand which means that increase in price will result in decrease in total revenue.

Thus the correct Answer:-

B:- 0.2; decrease

Answer:- An example of a good with such a demand is…………..

Correct Answer:- A:- Theater Tickets

Reason:- The demand of theater tickets is elastic in nature, when the price increases, demand decreases.

I REQUEST YOU TO KINDLY RATE THE ANSWER AS THUMBS UP. THANKS A LOT.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.