Economics
posted by Lindsay .
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.
Respond to this Question
Similar Questions

managerial economics
Price 1 is 50, price 2 is 38.78. Quantity 1 is 100, quantity 2 is 169. solve the price elasticity of demand. what if our goal is to decrease price by 14% what if our goal is to raise quantity from 169 to 300 by how much percentage … 
Microeconomics:
Just needing to know if I have done the work correctly with this problem: For the total revenue and marginal revenue the answers are: Price $20 Quantity 0 TR 0 MR 0 Price $18 Quantity 1 TR 18 MR 18 Price $16 Quantity 2 TR 32 MR 14 … 
college/microeconomics
Just needing to know if I have done the work correctly with this problem: For the total revenue and marginal revenue the answers are: Price $20 Quantity 0 TR 0 MR 0 Price $18 Quantity 1 TR 18 MR 18 Price $16 Quantity 2 TR 32 MR 14 … 
Managerial Economics
Skateoards sell for $70. During the past year they sold 4,000 skateboards. The company beleives that the price elasticity for product is 2.5. If it decreases the price to $63, what would be the quantity sold? 
managerial economics
Exercise 1 The marketing manager has estimated the company’s demand curve with the equation P=3000 – 40Q. To develop a deeper understanding of pricing and quantity to be produced, complete the following analyses: 1. Draw the demand … 
economics
1. Suppose that as the price of Y falls from $3.00 to $1.00 the quantity of Y demanded increases from 10 to 18. Compute the price elasticity of demand. Is the demand elastic or inelastic? 
economics
data collected in the imaginary economy of karabekiar reveals that when price of bork increased by 20%, the quantity of bork sold decreased by 15% and the quantity of perf demanded decreased by 10% what is the crossprice elasticity … 
Quantitative Business Analysis
The market for 40 lb. bags of pine bark mulch (sold at John's shop) is described by the following functions: p = .3q + 66 p = 1.3q  30 where p is the price per unit and q is the number of bags bought and sold. a) Which of the functions … 
Microeconomics
The quantity of TVs sold is 100 at the unit price $200. Suppose the price elasticity of demand for TVs by the initial value method is 2.0, and you would like to decrease the unit price for TVs to $150. Then the new quantity sold must … 
Math
The demand equation for a product is: q=60/p + ln(65p^3) A) Determine the point of elasticity of demand when p=4, and classify the demand as elastic, inelastic, or of unit elasticity at this price level. B) If the price is lowered …