Answered: Suppose that a 10 increase in price…

Suppose that a 10 increase in price results in a 50 percent decrease in quantity demanded. What does (the absolute value of) own price elasticity of demand equal? a) 0.5. b) 0.2. c) 5. d) 10.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 1QR

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Question

Suppose that a 10 increase in price results in a 50 percent decrease in quantity
demanded. What does (the absolute value of) own price elasticity of demand
equal?
a) 0.5.
b) 0.2.
c) 5.
d) 10.

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