Solve for the price elasticity of demand

Reference no: EM13244065

Consider the market for taxi ridesin a particular metropolitan area.
a) Suppose that, when the price permile increases by 40%, total miles demanded falls by 30%. Solve forthe price elasticity of demand.

b) Is the demand for taxi rideselastic or inelastic (in this example)? Explain how you answer inpart a) is relevant.

Reference no: EM13244065

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