A firm increases the price of a good from £4 to £5. As a result the quantity demanded falls from 200 units to 150 units. Calculate the price elasticity of demand for that good. Enter the magnitude of the PED - the negative sign is already provided. PED =

A firm increases the price of a good from £4 to £5. As a result the quantity demanded falls from 200 units to 150 units. Calculate the price elasticity of demand for that good. Enter the magnitude of the PED - the negative sign is already provided. PED =

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A firm increases the price of a good from £4 to £5. As a result the quantity demanded falls from
200 units to 150 units. Calculate the price elasticity of demand for that good. Enter the magnitude of the
PED - the negative sign is already provided.
PED = -
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