If the original price and quantity demanded are $1 and 100 respectively, and there is an increase in the price to $1.10 and the quantity demanded falls to 95, the price elasticity of demand is Question 25Answer a. -5 b. -50 c. 2 d. -0.5

If the original price and quantity demanded are $1 and 100 respectively, and there is an increase in the price to $1.10 and the quantity demanded falls to 95, the price elasticity of demand is Question 25Answer a. -5 b. -50 c. 2 d. -0.5

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section5.1: The Elasticity Of Demand

Problem 1QQ: Define the price elasticity of demand. Explain the relationship between total revenue and the price...

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Question

If the original price and quantity demanded are $1 and 100 respectively, and there is an increase in the price to $1.10 and the quantity demanded falls to 95, the price elasticity of demand is

Question 25Answer

-5

-50

-0.5

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