A consumer spends R2000 monthly on Product A when its price is R2 and continues to spend R2000 monthly when its price increases to R2.50. Calculate the consumer’s price elasticity of demand. Show all your workings and explain your answer.
A consumer spends R2000 monthly on Product A when its price is R2 and continues to spend R2000 monthly when its price increases to R2.50. Calculate the consumer’s price elasticity of demand. Show all your workings and explain your answer.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter5: Price Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 16SQ
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A consumer spends R2000 monthly on Product A when its price is R2 and continues to spend R2000 monthly when its price increases to R2.50. Calculate the consumer’s price elasticity of demand . Show all your workings and explain your answer.
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