Consider the following Table below: Product 1 Product 2 Initial price and quantity Price = RM1,000 Quantity = 500 Price = RM20 Quantity = 30 New Price and quantity Price = RM1,500 Quantity = 400 Price = RM15 Quantity = 35 Calculate the price elasticity of demand for Product 1 and Product 2
Consider the following Table below: Product 1 Product 2 Initial price and quantity Price = RM1,000 Quantity = 500 Price = RM20 Quantity = 30 New Price and quantity Price = RM1,500 Quantity = 400 Price = RM15 Quantity = 35 Calculate the price elasticity of demand for Product 1 and Product 2
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter5: Price Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 4SQP
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Question
- Consider the following Table below:
|
Product 1 |
Product 2 |
Initial price and quantity |
Price = RM1,000 Quantity = 500 |
Price = RM20 Quantity = 30 |
New Price and quantity |
Price = RM1,500 Quantity = 400 |
Price = RM15 Quantity = 35 |
Calculate the price
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