question archive Dell has gone through some market challenges these past few years, especially with the desktop market
Dell has gone through some market challenges these past few years, especially with the desktop market
Subject:EconomicsPrice:2.88 Bought3
Dell has gone through some market challenges these past few years, especially with the desktop market. If the prices of desktop computers decreases by 14% last quarter resulting in an increase of 12% in quantity demanded, then Dell will decrease the quantity supplied of desktops by 10%. What is the price elasticity of supply for Dell desktops?
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Given information:
- Change in price of Dell desktop: 14%
- Change in quantity demanded: 12%
- Change in quantity supplied: 10%
According to the given information, price elasticity of supply for Dell desktops would be:
=PercentagechangeinquantitysuppliedPercentagechangeinpricelevel=10%14%=0.71
