By what percentage would rise in the price reduce quantity

Reference no: EM13207173

How do you calculate price elasticity of demand? If 50 Units of a good are demanded at a price of $1 per unit. A reduction in price to $0.20 results in an increase in quantity demand to 70 Units. Show that these data yield a price elastity of $0.25. By what percentage would a 10 % rise in the price reduce the quantity demanded, assuming price elastisity remains constant along the demand curve?

Reference no: EM13207173

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