The company recently changed the selling price of one of its products from P50.00 to P45.00. The unit sales changed from 2,000 to 2,350. Tax rate is 30%. The product's price elasticity of demand is closest to:

The company recently changed the selling price of one of its products from P50.00 to P45.00. The unit sales changed from 2,000 to 2,350. Tax rate is 30%. The product's price elasticity of demand is closest to:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The company recently changed the selling price of one of its products from P50.00 to P45.00.
The unit sales changed from 2,000 to 2,350. Tax rate is 30%. The product's price elasticity of
demand is closest to:
a. -0.16 b. -2.12 c. 1.53 d. -1.53 e. -1.97 f. -1.07

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