Explore BrainMass
Share

Explore BrainMass

    Price Elasticity

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    You are a painter, and the price of a gallon of paint increases from $3.00 a gallon from 3.50 a gallon. Your usage of paint drops from 35 gallons a month to 20 gallons a month. perform the following:

    1. compute the price elasticity of demand for paint and show your calculations.
    2. decide whether the demand for paint is elastic, unitary elastic, or inelastic.
    3. explain your reasoning and interpret results?

    © BrainMass Inc. brainmass.com October 10, 2019, 12:47 am ad1c9bdddf
    https://brainmass.com/economics/demand-supply/price-elasticity-307057

    Solution Summary

    A Complete, Neat and Step-by-step Solution is provided in the attached file.

    $2.19