Respuesta :
Answer:
-0.56
Explanation:
The computation of the price elasticity of demand using the average-values formula is shown below:
= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)
where,
Change in quantity demanded is
= Q2 - Q1
= 200 - 250
= -50
And, an average of quantity demanded is
= (200 + 250) ÷ 2
= 225
Change in price is
= P2 - P1
= $3 - $2
= 1
And, the average of price is
= ($3 + $2) ÷ 2
= $2.5
So, after solving this, the price of elasticity is -0.56
Answer:
0.56 (approx)
Explanation:
Given:
PRICE (P1) = $2
QUANTITY (Q1) = 250
PRICE (P2) = $3
QUANTITY (Q2) = 200
Calculation:
Average value method
Price elasticity of Demand = [Q2-Q1]/[(Q2+Q1)/2] / [P2-P1]/[(P2+P1)/2]
= [200-250]/[(200+250)/2] / [3-2]/[(3+2)/2]
= (-50)/(450/2) / (-1)/(5/2)
= (-50)/225 / (-1)/(2.5)
= -0.22222 / -0.4
= 0.555555
= 0.56 (approx)
