Suppose the price of apples rises from $3 a pound to $3.45 and your consumption of apples drops from 30 pounds of apples a month to 21 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?
The price elasticity of demand is the percentage change in the quantity of goods demanded divided by the corresponding percentage change in its price. The percentage change for any variable is ...
The solution explains how to calculate the price elasticity of demand of apples. It provides a discussion as well as calculation in the response.