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Answer to Question #120612 in Economics for tutu
Question #120612
1. Given that the price of an orange is GHC 1 and the calculated value of price elasticity of demand for an orange is -2.08.
a. Clearly state and explain the type of elasticity and the meaning of the value of price elasticity [-2.8]
a. Clearly state and explain the type of elasticity and the meaning of the value of price elasticity [-2.8]
Expert's answer
a. If the price elasticity of demand for an orange is -2.08, then the demand is elastic.
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