When the price of Good 1 changed from $7 per unit to $10 per unit, demand for Good 2 changed from 4000 units to 5000 units. Calculate the appropriate elasticity. You will interpret your findings in the next question. Enter only numbers, a decimal point, and/or a negative sign as needed. Round your answer to two decimal places as necessary; if you round on intermediate steps, use four places.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter6: Elasticities
Section: Chapter Questions
Problem 6P: Explain why using the midpoint formula for calculating the elasticity of demand gives the same...
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also with the questions in the picture : good 1 and 2 can be described as what : substitutes, elastic goods, unit elastic goods, inferior goods, complements, normal goods, inelastic goods. More than one answer is right

When the price of Good 1 changed from
$7 per unit to $10 per unit, demand for
Good 2 changed from 4000 units to 5000
units. Calculate the appropriate elasticity.
You will interpret your findings in the next
question.Enter only numbers, a decimal
point, and/or a negative sign as needed.
Round your answer to two decimal places
as necessary; if you round on intermediate
steps, use four places.
Transcribed Image Text:When the price of Good 1 changed from $7 per unit to $10 per unit, demand for Good 2 changed from 4000 units to 5000 units. Calculate the appropriate elasticity. You will interpret your findings in the next question.Enter only numbers, a decimal point, and/or a negative sign as needed. Round your answer to two decimal places as necessary; if you round on intermediate steps, use four places.
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