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Consider Nibbles, a very specialized brand of parakeet chow.
When its price is $16 per package, it sells 40,000 units. When its price rises to $20, it sells 30,000
units. Calculate its price elasticity of demand, carefully following all numeric directions. You will
interpret this result in the next question.

Respuesta :

raphealnwobi

The price elasticity of demand for the parakeet chow is 1.33.

What is price elasticity of demand?

Price elasticity of demand is the change in product quantity demanded to change in price.

From the question:

[tex]\%\ Change\ in \ quantity=\frac{30000-40000}{30000}= -33.3\%\\\\\%\ Change\ in \ price=\frac{20-16}{16}= 25\%\\\\PED=|\frac{\%\ Change\ in \ quantity}{\%\ Change\ in \ price} |=|\frac{-33.3\%}{25\%}|=1.33[/tex]

The price elasticity of demand for the parakeet chow is 1.33.

Find out more on elasticity of demand at: https://brainly.com/question/24384825

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