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

assistance needed

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

To determine the change in quantity demanded when the price elasticity is equal to 2, we need to use the formula:

% change in quantity demanded = price elasticity * % change in price

Given that the price elasticity is equal to 2 and the price is increased by 1%, we can calculate the change in quantity demanded as follows:

% change in quantity demanded = 2 * 1% = 2%

Since the current quantity demanded is 200 units, we can calculate the change in quantity demanded as follows:

Change in quantity demanded = % change in quantity demanded * current quantity demanded
= 2% * 200 units
= 0.02 * 200 units
= 4 units

Therefore, a 1% increase in price will cause the quantity demanded to decrease from 200 units to 196 units.