1. Calculate the price elasticity for each of the following State whether price elasticity of demand is elastic, unit elastic, or inelastic. Will revenue rise, decline, or stay the same with the given change in price? . The price of pens rises 5%; the quantity demanded falls 10%.

1. Calculate the price elasticity for each of the following State whether price elasticity of demand is elastic, unit elastic, or inelastic. Will revenue rise, decline, or stay the same with the given change in price? . The price of pens rises 5%; the quantity demanded falls 10%.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 2CQQ: The price of a good rises from 8 to 12, and the quantity demanded falls from 110 to 90 units....

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Question

1. Calculate the price elasticity for each of the following. State whether price elasticity of demand is elastic, unit
elastic, or inelastic. Will revenue rise, decline, or stay the same with the given change in price?
a. The price of pens rises 5%; the quantity demanded falls 10%.

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