question archive Suppose that at a price of $55, 100 units were sold while at a price of $33, 153 units were sold
Suppose that at a price of $55, 100 units were sold while at a price of $33, 153 units were sold
Subject:EconomicsPrice:2.88 Bought3
Suppose that at a price of $55, 100 units were sold while at a price of $33, 153 units were sold. Without calculating the price elasticity value, can you determine whether demand is elastic, unit-elastic, or inelastic in this price range?
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The price elasticity of demand is elastic. This is because a decrease in price by $22 causes the quantity demanded to increase by more than 22, which is 53. Thus, a small price change causes a greater change in quantity demanded.
