Answer to Question #212880 in Microeconomics for lebo

Question

you are told that the price of beef fell by 50%, the quantity of demand rose by 100%. the demand for beef would thus be

Answer 1

Price elasticity of demand=$\%ge\; change\; in\; quantity/\%ge\; change\; in\; price$ %ge change in quantity/%ge change in price

Price elasticity of demand= $100$%/50%

Price elasticity of demand= 2

The demand for beef is price elastic with a price elasticity of 2.