The price of calculators increases by 15 percent and the quantity demanded per week falls by 45 percent.The price elasticity of demand is 3.

Name: The price of calculators increases by 15 percent and the quantity demanded per week falls by 45 percent.The price elasticity of demand is 3.
Brand: Quizplus
Rating: 5.0 (46 reviews)

Question

Quizplus · Accepted Answer

If the price elasticity of demand is 3, then a 15 percent increase in price would result in a 45 percent decrease in quantity demanded (since 3 = 45/15). Therefore, the statement is true.

The Price of Calculators Increases by 15 Percent and the Quantity