Answer to Question #152178 in Microeconomics for hamza khan

Question

The price elasticity of demand for chicken is estimated to be -0.45. If the price of chicken increased by
08 percent, what will be the expected percentage decrease in the quantity of chicken sold?

Answer 1

$PED=\frac{Percent△ in Quantity }{Percent △ in Price }$

$-0.45=\frac{Q}{0.8}$

$Q=-0.45×0.8$

$=-0.36$ Percent