menu
Hit Return to see all results

# A rise in the price of a certain commodity from $20 to$25 reduces quantity demanded from 25,000 to 10,000 units. Calculate the price elasticity of demand.

BuyFindarrow_forward

### Microeconomics: Principles & Policy

14th Edition
William J. Baumol + 2 others
Publisher: Cengage Learning
ISBN: 9781337794992

#### Solutions

Chapter
Section
BuyFindarrow_forward

### Microeconomics: Principles & Policy

14th Edition
William J. Baumol + 2 others
Publisher: Cengage Learning
ISBN: 9781337794992
Chapter 6, Problem 5TY
Textbook Problem
1 views

## A rise in the price of a certain commodity from $20 to$25 reduces quantity demanded from 25,000 to 10,000 units. Calculate the price elasticity of demand.

To determine

To calculate the price elasticity of demand.

### Explanation of Solution

According to question, the proportionate change in quantity demanded will be calculated as follows:

ΔQd=10,00025,00025,000×100=15,00025,000×100=60

Proportionate change in price will be calculated as follows:

ΔP=252020

### Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

#### The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

#### Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions add
How do managerial accounting and financial accounting differ?

Managerial Accounting: The Cornerstone of Business Decision-Making

Be prepared to discuss your experience and conclusions in class.

Understanding Management (MindTap Course List)

Assume that you have a short investment horizon (less than 1 year). You are considering two investments: a 1-ye...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

How does a Pareto chart assist management?

Financial & Managerial Accounting

Explain the revenue recognition principle.

College Accounting, Chapters 1-27

© 2020 bartleby. All Rights Reserved.