Answer the question using the 3 -step approach 2. Due to Covid 19, there has been a major delay with the shipping lines causing an increase in shipping costs for major retailer Shipping cost is a major cost component for shea products. How will Covid affect the supply and demand for Shea products? 3. A 12 % increase in the price of fuel reduces the quantity of fuel demanded by 3 %. What is the price elasticity of demand for fuel? What can you say about elasticity?
Answer the question using the 3 -step approach
2. Due to Covid 19, there has been a major delay with the shipping lines causing an increase in shipping costs for major retailer
Shipping cost is a major cost component for shea products. How will Covid affect the
3. A 12 % increase in the price of fuel reduces the quantity of fuel demanded by 3 %. What is the price elasticity of demand for fuel?
What can you say about elasticity?
Change in demand and supply occurs due to change in factors other than price. Increase in demand and supply shifts the demand and supply curve towards right and decrease in demand and supply curve shifts the demand and supply curve towards left.
Price Elasticity of Demand measures the percentage change in quantity demanded of a good or service due to percentage change in price.
Price Elasticity of Demand = % Change in quantity demanded / % Change in price
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