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Answer to Question #73816 in Microeconomics for charmaine
Question #73816
Decrease in price from R50 to R40 causes quantity demands to increase from 2500 to 3000.using sex elasticity of demand ,the price elasticity of demand is
Expert's answer
1) PED = (% change in quantity demanded) / (% change in price) =
= ((3000-2500)/2500) / ((40-50)/50) = -1
= ((3000-2500)/2500) / ((40-50)/50) = -1
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