If a 15% increase in price for a good results in a 20 percent decrease in quantity demanded, the price elasticity of demand is.

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19-09-2022
Business

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If a 15% increase in price for a good results in a 20 percent decrease in quantity demanded, the price elasticity of demand is.

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qwteddy qwteddy · Answer 1 · 2022-09-21T17:43:46-04:00

If a 15% increase in price for a good result in a 20 percent decrease in quantity demanded, the price elasticity of demand is 1.33

Price Elasticity of Demand = Change in Demanded Quantity / Change in Price

Demand Elasticity at Price = 20 / 15

Demand Elasticity at Price = 1.33

Price elasticity of demand is the term used to describe the relationship between the percentage change in a product's quantity sought and the percentage change in price.

Price Elasticity of Demand (PED) measures how consumers' purchasing choices are impacted by price fluctuations. In other words, it establishes the relationship between price, demand, and the way it reacts to price changes.

Five types of price elasticity of demand are:

Perfectly Elastic Demand

Elastic Demand

Perfectly Inelastic Demand

Inelastic Demand

Unitary Demand

Learn more about the Price elasticity of demand here:

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