Suppose that legalizing the use of heroin would decrease its price by 75 percent. If the price elasticity of demand for heroin is -2.75, what would be the percentage increase in the quantity of heroin demanded from legalizing heroin? percent. using a real number rounded to two decimal places.) Suppose instead that the price elasticity of demand for heroin is -0.37. What would be the percentage increase in the quantity of heroin demanded from legalizing heroin? percent (enter your response rounded to two decimal places). The higher the absolute value of the price elasticity of demand for heroin, the the increase in heroin use that would result from legalization.

Suppose that legalizing the use of heroin would decrease its price by 75 percent. If the price elasticity of demand for heroin is -2.75, what would be the percentage increase in the quantity of heroin demanded from legalizing heroin? percent. using a real number rounded to two decimal places.) Suppose instead that the price elasticity of demand for heroin is -0.37. What would be the percentage increase in the quantity of heroin demanded from legalizing heroin? percent (enter your response rounded to two decimal places). The higher the absolute value of the price elasticity of demand for heroin, the the increase in heroin use that would result from legalization.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...

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