Elasticity: End of Chapter Problem 5. Let's work out a few examples to get a sense of what elasticity of demand means in practice. a. If the elasticity of demand for college textbooks is -0.1, and the price of textbooks increases by 20%, how much will the quantity demanded change, and in what direction? Quantity demanded changes by In which direction? O number of textbooks up down b. In your answer to part a, was your answer in percentages or in total number of textbooks? O percentages

Elasticity: End of Chapter Problem 5. Let's work out a few examples to get a sense of what elasticity of demand means in practice. a. If the elasticity of demand for college textbooks is -0.1, and the price of textbooks increases by 20%, how much will the quantity demanded change, and in what direction? Quantity demanded changes by In which direction? O number of textbooks up down b. In your answer to part a, was your answer in percentages or in total number of textbooks? O percentages

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

Elasticity: End of Chapter Problem
5. Let's work out a few examples to get a sense of what elasticity of demand means in practice.
a. If the elasticity of demand for college textbooks is -0.1, and the price of textbooks increases by 20%, how much will the
quantity demanded change, and in what direction?
Quantity demanded changes by
In which direction?
number of textbooks
up
O down
b. In your answer to part a, was your answer in percentages or in total number of textbooks?
percentages

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