Answer to Question #175786 in Economics of Enterprise for Joshua

Question

if the percentage change in price is 12 percent and the percentage change quantity demanded is 7 percent, what is the elasticity of demand?

Answer 1

elasticity of demand=$\frac { \text {percentage change in quantity demanded}}{ \text{ percentage change in price}}$

=$\frac{7\%}{12\%}$

=0.5833