A pizza restaurant raises the price of their pizza by 10%. As a result, they witness a 20% decrease in the quantity demand of their pizza. What is the price elasticity of demand for this pizza restaurant? O-25 0-2 O-0.5 O-10
A pizza restaurant raises the price of their pizza by 10%. As a result, they witness a 20% decrease in the quantity demand of their pizza. What is the price elasticity of demand for this pizza restaurant? O-25 0-2 O-0.5 O-10
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter5: Price Elasticity Of Demand And Supply
Section5.3: Determinants Of Price Elasticity Of Demand
Problem 1YTE: According to the previous discussion, what factors influence the price elasticity of demand for...
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Introduction
Price elasticity of demand: It measures the percentage change in the quantity demanded for a 1% increase in the price level. If the absolute value of the elasticity of demand is greater than 1, we say the demand is elastic. Whereas if the absolute value of the elasticity of demand is lesser than 1, we say the demand is inelastic.
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