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Answer to Question #137358 in Macroeconomics for Adi Baitassov
Question #137358
Suppose a 10 percent increase in the quantity of lettuce demanded is observed as a result of a 40 percent decline in its price. Then the price elasticity of demand for lettuce is
Expert's answer
Price elasticity of demand = % change in Quantity demanded. / % change in Price
= 10%/40%
price elasticity =0.25
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