If the elasticity of demand for Good A is −3, a 33 percent decrease in quantity demanded of Good A results from a(n) ________ in the price of Good A a. 99 percent decrease b. 99 percent increase c. 11 percent decrease d. 11 percent increase e. 33 percent decrease

If the elasticity of demand for Good A is −3, a 33 percent decrease in quantity demanded of Good A results from a(n) ________ in the price of Good A a. 99 percent decrease b. 99 percent increase c. 11 percent decrease d. 11 percent increase e. 33 percent decrease

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter6: Elasticities

Section: Chapter Questions

Problem 8P: If the elasticity of demand for hamburgers equals 21.5 and the quantity demanded equals 40,000,...

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Question

If the elasticity of demand for Good A is −3, a 33 percent decrease in quantity demanded of Good A results from a(n) ________ in the price of Good A

a. 99 percent decrease b. 99 percent increase c. 11 percent decrease d. 11 percent increase e. 33 percent decrease

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If the elasticity of demand for hamburgers equals 21.5 and the quantity demanded equals 40,000, predict what will happen to the quantity demanded of hamburgers when the price increases by 10 percent. If the price falls by 5 percent, what will happen?