Question 40Suppose the elasticity of demand for watches is -0.60. If the price rises by 12% how much does the quantity demand change by?a. Quantity demanded falls by 7.2%b. Quantity demanded falls by 3.6%c. Quantity demanded falls by 12%d. Quantity demanded falls by 20%

given that, elasticity of demand = 0.60 percentage change by price is 12% we have to find quantity…

Question 40 Suppose the elasticity of demand for watches is -0.60. If the price rises by 12% how much does the quantity demand change by? O a. Quantity demanded falls by 7.2% O b. Quantity demanded falls by 3.6% O c. Quantity demanded falls by 12% O d. Quantity demanded falls by 20%

Question 40 Suppose the elasticity of demand for watches is -0.60. If the price rises by 12% how much does the quantity demand change by? O a. Quantity demanded falls by 7.2% O b. Quantity demanded falls by 3.6% O c. Quantity demanded falls by 12% O d. Quantity demanded falls by 20%

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter6: Elasticities

Section: Chapter Questions

Problem 8P: If the elasticity of demand for hamburgers equals 21.5 and the quantity demanded equals 40,000,...

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