PRIN OF MICROECONOMICS
2nd Edition
ISBN: 9780393914085
Author: coppock
Publisher: Norton, W. W. & Company, Inc.
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Chapter 4, Problem 1QR
To determine
Explain the
Expert Solution & Answer
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The percentage change in the quantity demanded of a product due to the percentage change in its
As Equation 1 shows, the price elasticity of demand tells us exactly how quantity demanded responds to a change in price. Generally, the value of price elasticity is negative. However, economists just to look at price elasticity of demand as an absolute value. That means, the price elasticity of demand is always expressed as a positive number.
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