price elasticity of demand
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Suppose the price of apples rises from $3.50 a pound to $4.00 and your consumption of apples drops from 30 pounds of apples a month to 20 pounds of apples. Calculate your price elasticity of demand of apples. What can you say about your price elasticity of demand of apples? Is it Elastic, Inelastic, or Unitary Elastic?
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The first line gives the formula for calculating the price elasticity .
price elasticity of demand = % change in Q / % change in Price
% ...
Education
- BE, Bangalore University, India
- MS, University of Wisconsin-Madison
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