Sample bartleby Q&A Solution
You ask questions, our tutors answer
Browse
Question
1 views

If the price elasticity of demand for used cars priced between $4,000 and $6,000 is -0.75 (using the mid-point method), what will be the percent change in quantity demanded when the price of a used car falls from $6,000 to $4,000? Instructions: Round your answer to the nearest whole number (percentage).

Expert Answer

The formula for Price elasticity of demand is shown below.

fullscreen

Now, let’s first calculate %change in price.

fullscreen

Given price elasticity of demand is -0.75. Substitute the values in the formula of Price elasticity of demand.

fullscreen

Answer:  The percent change in quantity demanded is 30.