Name:1. When the price of a bar of chocolate is $1, demand is 100,000 bars. When the price rises to$1.50, demand falls to 60,000 bars. Calculate the price elasticity of demand according to theinstructions below and express your answer in absolute value. [LO 4.1]a. Suppose price increases from $1 to $1.50. Calculate the price elasticity of demand in termsof percent change.b. Suppose price decreases from $1.50 to $1. Calculate the price elasticity of demand in termsof percent change.

Name: Name:1. When the price of a bar of chocolate is $1, demand is 100,000
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Description: Name:1. When the price of a bar of chocolate is $1, demand is 100,000 bars. When the price rises to$1.50, demand falls to 60,000 bars. Calculate the price elasticity of demand according to theinstructions below and express your answer in absolute va

price elasticity can be defined as rate of change in price when quantity

Answered: me: nd is 100,000 bars. Wh ce…

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me: nd is 100,000 bars. Wh ce elasticity of demand ute value. [LO 4.1] ate the price elasticity ate the price elasticity

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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When the price of a bar of chocolate is $1, demand is100,000 bars. When the price rises to $1.50, demandfalls to 60,000 bars. Calculate the price elasticity ofdemand according to the instructions below andexpress your answer in absolute value. [LO 4.1]a. Suppose price increases from $1 to $1.50.Calculate the price elasticity of demand interms of percent change, as described onpages 79–80.
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