(change in quantity divided by average quantity over selected range) Price elasticity = ------------------------------------------------------------------------ (change in price divided by average price over selected range) Laptop A cost £539 in 2015 and sold 13 million units that year. Laptop A's price increased to 599 in 2016 and sold 78 million units that year. What is the laptop's price elasticity of demand?

(change in quantity divided by average quantity over selected range) Price elasticity = ------------------------------------------------------------------------ (change in price divided by average price over selected range) Laptop A cost £539 in 2015 and sold 13 million units that year. Laptop A's price increased to 599 in 2016 and sold 78 million units that year. What is the laptop's price elasticity of demand?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section5.1: The Elasticity Of Demand

Problem 1QQ: Define the price elasticity of demand. Explain the relationship between total revenue and the price...

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