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Using the midpoint method, the price elasticity of demand for a good is computed to be approximately 0.75. Which of the following events is consistent with a 10 percent decrease in the quantity of the good demanded?

Respuesta :

Answer:

= 13.33%

Explanation:

Given that

Price elasticity of demand = 0.75

Change in quantity = 10%

The computation of the quantity of the good demanded is given below:-

Price elasticity of demand = (Percentage change in quantity demanded) ÷ (percentage change in price)

Percentage change in price = Percentage change in quantity demanded ÷ Price elasticity of demand

Percentage of change in price

= 10 ÷ 0.75

= 13.33%

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