Answered: Suppose that when the price of a good…

Suppose that when the price of a good rises from $1.00 to $1.50 per unit, the quantity demanded decreases from 2000 to 1000 units. The price elasticity of demand for this product is:

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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Question

Suppose that when the price of a good rises from $1.00 to $1.50 per unit, the quantity demanded
decreases from 2000 to 1000 units.
The price elasticity of demand for this product is:
Select one:
a.4
b.0.16
C. 1
d. 2

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