posted by Lindsay on .
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.