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If the price falls from 6 to 4, the quantity demanded rises from 8000 to 12000. a) Calculate the price elasticity of demand b) What happens to turnover (Price * Quantity) due to the price change?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If the price falls from 6 to 4, the quantity demanded rises from 8000 to 12000.

a) Calculate the price elasticity of demand
b) What happens to turnover (Price * Quantity) due to the price change?

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