If the elasticity of demand for milk tea equals -1.5 and the quantity demanded equals 40,000, predict what will happen to the quantity demanded of milk tea when: the price increases by 10% the price falls by 5%

If the elasticity of demand for milk tea equals -1.5 and the quantity demanded equals 40,000, predict what will happen to the quantity demanded of milk tea when: the price increases by 10% the price falls by 5%

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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If the elasticity of demand for milk tea equals -1.5 and the quantity demanded equals 40,000, predict what will happen to the quantity demanded of milk tea when:

the price increases by 10%
the price falls by 5%

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