A 10 percent increase in the price of portable power banks leads to a 5 percent decrease in the quantity demanded of portable power banks. The absolute price elasticity of demand is

Question

Quizplus · Accepted Answer

The absolute price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. Here, it is |(-5%)/(10%)| = 0.5.

A 10 Percent Increase in the Price of Portable Power