If a 10 percent increase in the price of a luxury hotel room causes the quantity demanded to decrease by 41.5 percent.,we can conclude that the price elasticity of demand for luxury hotel rooms is approximately -0.24.

Question

Quizplus · Accepted Answer

The price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price, which in this case is -41.5% / 10% = -4.15, indicating a much more elastic demand.

If a 10 Percent Increase in the Price of a Luxury