Question #212880

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


Expert's answer

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

Price elasticity of demand= 100100%/50%%/50%

Price elasticity of demand= 2

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


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