Answered: What happens to the value of price…

What happens to the value of price elasticity of demand (PED) when the point X to point Y and what describes the value at point Y?

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

12 The diagram shows a demand curve for pineapples.
ABCD
price
($)
effect on
value of PED
fall
2
fall
rise
unchanged
1.5-
1
0.5-
0-
0
quantity (000s)
What happens to the value of price elasticity of demand (PED) when there is a movement from
point X to point Y and what describes the value at point Y?
value of
PED at Y
3
elastic
inelastic
elastic
unitary
6
9
12

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