Answer to Question #106617 in Microeconomics for karina hernandez

Question #106617
if a monopolist sell 10 units at a price of $5 and 15 units at a price of $4 what is elasticity of demand
1
Expert's answer
2020-04-08T10:12:55-0400

"E=|\\frac {(Q2-Q1)}{Q1}\n""\u00d7\\frac {P1}{P2--P1}|;"

"E=|5\/10\u00d75\/(-1)|=|0.5\u00d7(-5)|=" % "2.5"

answer: demand will increase by 2.5% with a decrease in price by 1%.


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS