Answer to Question #135313 in Economics for Chase jordan

Question

According to the elasticity computation of 0.5, how much would popcorn sales fall if the prices increased by:
40%-
30%-

Answer 1

$E=\frac{percentage.change.in.quantity. demanded}{percentag. change.in.price}$

Case 1

$0.5=\frac{percentage.change.in.quantity. demanded}{40}$

$percentage.change.in.quantity.demanded = 0.5*40 = 20 percent$

Case 2

$0.5=\frac{percentage.change.in.quantity. demanded}{30}$

$percentage.change.in.quantity.demanded = 0.5*30 = 15 percent$