Answered: Suppose the price elasticity of demand…

Suppose the price elasticity of demand for a good is – 0.2. If there is a 6% increase in the price of the good, by what percentage will the demand for the good go down?

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter6: Elasticity

Section: Chapter Questions

Problem 3QP: Prove that price elasticity of demand is not the same as the slope of a demand curve.

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Suppose the price elasticity of demand for a good is – 0.2. If there is a 6% increase in the
price of the good, by what percentage will the demand for the good go down?

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