6. If quantity demanded for sneakers falls by 10 percent when price increases 25 percent, we know that the absolute value of the own price elasticity of sneakers is: А. 2.5. B. 0.4. С. 2.0. D. 0.27.

6. If quantity demanded for sneakers falls by 10 percent when price increases 25 percent, we know that the absolute value of the own price elasticity of sneakers is: А. 2.5. B. 0.4. С. 2.0. D. 0.27.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 16SQ

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Question

Could you explain why the answer is B (0.4)?

6. If quantity demanded for sneakers falls by 10 percent when price increases 25 percent, we
know that the absolute value of the own price elasticity of sneakers is:
А. 2.5.
B. 0.4.
С. 2.0.
D. 0.27.

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