What is the difference between -2.5 and 2.5 elasticity?
For unlimited access to Homework Help, a Homework+ subscription is required.
If price elasticity is 2.5, what does it imply?
If the price elasticity of demand for a product is -2.5, then a price cut from $2.00 to $1.80 will _________ the quantity demanded by about ________.
increase; 250%
decrease; 2.5%
increase; 2.5%
increase; 25%
If the price elasticity of demand for a product is 2.5, then a price cut from $2.00 to $1.80 will:
a. increase the quantity demanded by about 2.5%.
b. increase the quantity demanded by about 25%.
c. decrease the quantity demanded by about 2.5%.
d. increase the quantity demanded by about 250%.
Ā