Please answer these for me. Thanks ?? 1. If a 10% increase in price leads to a40% decrease in quantitydemanded, what is the value ofprice elasticity of demand? Showyour work.2. Which of the following will causethe demand for a good or service tobe inelastic?o Having few substituteso A longer time periodo Being a luxuryo Being a large share of theconsumer's budget

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1. If a 10% increase in price leads to a 40% decrease in quantity demanded, what is the value of price elasticity of demand? Show your work.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 5CQQ: An increase in the supply of a good will decrease the total revenue producers receive if a. the...

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Question

Please answer these for me. Thanks ??

1. If a 10% increase in price leads to a
40% decrease in quantity
demanded, what is the value of
price elasticity of demand? Show
your work.
2. Which of the following will cause
the demand for a good or service to
be inelastic?
o Having few substitutes
o A longer time period
o Being a luxury
o Being a large share of the
consumer's budget

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