What is the price elasticity of demand for bananas

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Reference no: EM131064712

Question

Assume that the price of bananas rises from $0.50 to $1.00 per pound and the quantity demanded falls from 1000 pounds to 600 pounds.

a- What is the price elasticity of demand for bananas?

b- Is this elasticity elastic or inelastic?

c- If the price of bananas were to increase by 20 percent, what would be the percentage change in the quantity demanded?

d- What happens to total revenue for banana sellers when the price of bananas increases? Explain your answer.

Reference no: EM131064712

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