Calculate cost elasticity of demand for paint

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Reference no: EM1367761

Q. You are a painter and cost of a gallon of paint increases from $3.00 a gallon to $3.50 a gallon. Your usage of paint drops from 35 gallons a month to 20 gallons a month. Perform following:

1.Calculate cost elasticity of demand for paint and show your calculations.

2. Decide where demand for paint is elastic, unitary elastic, or inelastic.

3. Elucidate your reasoning and interpret your results.

Reference no: EM1367761

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