Register
If the price elasticity of supply is 0.5 and the quantity supplied decreases by g 6%, then the price must:_______
169k views
14 votes
If the price elasticity of supply is 0.5 and the quantity supplied decreases by g 6%, then the price must:_______

User CookedCthulhu
by
5.1k points

1 Answer

6 votes

Answer: Price decreased by 12%

Step-by-step explanation:

Price elasticity = %Change in quantity / % change in price

0.5 = 6% / % change in price

0.5 * % change in price = 6%

% change in price = 6%/0.5

% change in price = 12%

User AlDiablo
by
4.8k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

5.3m questions

6.8m answers

Other Questions

Decker Tires' free cash flow was just FCF0 = $1.32. Analysts expect the company's free cash flow to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The WACC
For this question, assume that the expected rate of inflation is a function of the past year's inflation. Also, assume that the unemployment rate has been equal to the natural rate of unemployment for
Risa has to work long hours and sometimes weekends, losing out on family time. Risa doesn't find her long hours overly stressful, but rather she sees it as her contribution to maintaining her family's
Bob and Tom are two criminals who have been arrested for burglary. The police put Tom and Bob in separate cells. They offer to let Bob go free if he confesses to the crime and testifies against Tom. Bob
Explain the similarities and differences between how both producers and consumer use money
Link Copied!