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assume the own price elasticity of demand for a product is equal to -0.43. if there is a 10% increase in price, how many percentage points will quantity demanded decline?

Respuesta :

Answer: 4.3%

Explanation:

Given that,

price elasticity of demand = -0.43

% change in price = 10%

price elasticity of demand = [tex]\frac{Percentage\ change\ in\ quantity\ deamnded}{percentage\ change\ in\ price}[/tex]

0.43 =  [tex]\frac{Percentage\ change\ in\ quantity\ deamnded}{10}[/tex]

0.43 × 10 = Percentage change in Quantity demanded

Percentage change in Quantity demanded = 4.3%

Therefore, quantity demanded will decline by 4.3%.

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