Suppose that when the price falls by 40% for a particular good, the quantity demanded of this good rises by 5%. The price elasticity of demand for this good is equal to: (show your calculations and workouts) a. 6 b. 8 c. 0.125 d. 0.5

Suppose that when the price falls by 40% for a particular good, the quantity demanded of this good rises by 5%. The price elasticity of demand for this good is equal to: (show your calculations and workouts) a. 6 b. 8 c. 0.125 d. 0.5

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 32CTQ: Suppose you could buy shoes one at a time, miter than in pain. What do you predict the cross-price...

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Question

14. Suppose that when the price falls by 40% for a particular good, the quantity
demanded of this good rises by 5%. The price elasticity of demand for this good
is equal to: (show your calculations and workouts)
a. 6
b. 8
c. 0.125
d. 0.5

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