nswer Suppose that legalizing the use of marijuana would decrease its price by 7

Question

nswer Suppose that legalizing the use of marijuana would decrease its price by 79 percent If the price elasticity of demand for marijuana is -225, what would be the percentage increase in the quantity of marijuana demanded from legalizing marijuana? percent (Enter a numenic response using a real number rounded to two ymous answ nswers decimal places) ease in pri city of dem Suppose instead that the price elasticity of demand for marijuana is -0.32. What would be the percentage increase in the quantity of marjuana demanded from he fomu legalizing marjuana? percent (enter your response rounded to two decimal placos) g the form The higher the absolute value of the price elasticity of demand for marijuana, the the increase in marijuana use that would result from lealization ange in Qd quantity de ice elastic 96 change ment > Enter your answer in each of the answer boxes. 10:50 AM 7/5/201 earch

Explanation / Answer

1. Ed= (-)percentage in quantity / percentage change in price

Here Ed= -2.25 , Price= -79%

Percentage change in quantity will be 79%*2.25 = 177.75%

Negative signs will be eliminated and quantity will increase by 177.75%.

2. Now, price elasticity Is -0.32

Percentage change in quantity will be 79%*0.32 = 25.28%.

Negative signs will be eliminated and quantity will increase by 25.28%.

3. Answer - more .

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