ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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-0.8
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-1
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-1.25
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-2
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Detailed explanation-1: -The price elasticity of demand is calculated as the percentage change in quantity divided by the percentage change in price.
Detailed explanation-2: -a. Using the starting point method, what is the price elasticity of supply from a price of $4.00 to a price of $4.50 per iced coffee? 1.14 1.14 Correct, and supply is said to be price elastic Correct.
Detailed explanation-3: -If a demand of good changes by 60% due. to 40% change in price, the elasticity of. demand is. (A) 0.5.
Detailed explanation-4: -The price elasticity of demand (which is often shortened to demand elasticity) is defined to be the percentage change in quantity demanded, q, divided by the percentage change in price, p. The formula for the demand elasticity (ǫ) is: ǫ = p q dq dp .