A decrease in the price of oats went from $0.5 to $0.4 a pound, oat consumption increased from 64 tons to 80 tons a week in Oklahoma City and from 160 tons to 240 tons a week in Florence. The elasticity of demand is a. Greater in Oklahoma City than Florence b. Greater in Florence than Oklahoma City c. Equal in Oklahoma City and Florence d. Not enough info
A decrease in the
a. Greater in Oklahoma City than Florence
b. Greater in Florence than Oklahoma City
c. Equal in Oklahoma City and Florence
d. Not enough info
Elasticity of demand- it the % change in Quantity demanded(Qd) as a consequence of % change in price(P).
Perfectly inelastic - PED =0
Perfectly elastic - PED = ∞
Price Inelastic demand- PED < 1
Price Elastic Demand – PED > 1
Where, PED = Price elasticity of demand
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