A clothing company raised the price of one of its coats from $100 to $120.Now let's say that the increase caused a decrease in the quantity sold from 1,000 coats to 900 coats. Calculate the price elasticity of demand. Group of answer choices a. E = 0.56

A clothing company raised the price of one of its coats from $100 to $120.Now let's say that the increase caused a decrease in the quantity sold from 1,000 coats to 900 coats. Calculate the price elasticity of demand. Group of answer choices a. E = 0.56

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A clothing company raised the price of one
of its coats from $100 to $12O.Now let's say
that the increase caused a decrease in the
quantity sold from 1,000 coats to 900 coats.
Calculate the price elasticity of demand.
Group of answer choices
a. E = 0.56
%3|
b. E = 0.1
c. E = 5.55
d. E = 0.18

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