Answered: 3. When price of a commodity is Php 10…

3. When price of a commodity is Php 10 per unit, its demand is 100 units. When the price falls to Php 8 per unit, demand expands to 150 units. Calculate price elasticity of demand.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section5.1: The Elasticity Of Demand

Problem 1QQ: Define the price elasticity of demand. Explain the relationship between total revenue and the price...

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Question

3. When price of a commodity is
Php 10 per unit, its demand is 100
units. When the price falls to Php 8
per unit, demand expands to 150
units. Calculate price elasticity of
demand.

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