Assume that the loading fee of an insurance policy increases from $800 per policy to $1,000 and that, as a result, consumers reduce their demand for insurance, and therefore their premiums, from $10,500 to $9,500. What is the price elasticity of demand?

Question

Quizplus · Accepted Answer

The Answer of Assume that the loading fee of an insurance policy increases from $800 per policy to $1,000 and that, as a result, consumers reduce their demand for insurance, and therefore their premiums, from $10,500 to $9,500. What is the price elasticity of demand?

Assume That the Loading Fee of an Insurance Policy Increases