Homework Help Forum: home economics

Posted by Lupe on Sunday, April 12, 2009 at 8:22pm.

If the price elasticity is equal to 2, a 1percent increase in price will cause the quantity demanded to........from 200units to .......units

• Just plain "economics" - Writeacher, Monday, April 13, 2009 at 10:09am

  assistance needed

  
  

• home economics - economyst, Monday, April 13, 2009 at 3:20pm

  price elasticity is (%change Q)/(%change P). (Note: price elasticities are often expressed as a positive number, but in fact they should be negative). You are given (%change P) = 1%. Soooo, x/1% = -2, solve for x. Then apply that percentage change to 200 units

  
  

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