Question

assume the own price elasticity of demand for a product is equal to -0.43. if there is a 10% increase in price, how many percentage points will quantity demanded decline?

Answer 1

Answer: 4.3%

Step-by-step explanation:

Given that,

price elasticity of demand = -0.43

% change in price = 10%

price elasticity of demand =
`(Percentage\ change\ in\ quantity\ deamnded)/(percentage\ change\ in\ price)`

0.43 =
`(Percentage\ change\ in\ quantity\ deamnded)/(10)`

0.43 × 10 = Percentage change in Quantity demanded

Percentage change in Quantity demanded = 4.3%

Therefore, quantity demanded will decline by 4.3%.