Homework Help: Economics

Posted by Lindsay on Monday, February 25, 2013 at 7:13pm.

We're looking at the market for cat food. When the price is $10, the quantity sold is 1000 bags. When the price drops 10%, the quantity sold increases 30%.

Calculate the price elasticity of demand. (Answer in format X.XX, round to the nearest hundredth.)

I know the formula is (% change in quantity demanded)/(% change in price), but I'm not sure what my first step should be.

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