question archive If the price elasticity of demand for used cars priced between $4,000 and $6,000 is -0
If the price elasticity of demand for used cars priced between $4,000 and $6,000 is -0
Subject:EconomicsPrice:2.87 Bought7
If the price elasticity of demand for used cars priced between $4,000 and $6,000 is -0.75 (using the mid-point method), what will be the percent change in quantity demanded when the price of a used car falls from $6,000 to $4,000?
Instructions: Round your answer to the nearest whole number.
________percent.
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Answer:
SO PERCENTAGE CHANGE IN PRICE HERE IS
4000-6000/5000 = -2/5
SO AS PRICES HAVE FALLEN BY 40%
THE QUANTITY DEMANDED MUST BE INCREASED BY 40*0.75 = 30%
