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Determine the price elasticity of demand if, in response to an increase in price of 10 percent, quantity demanded decreases by 20 percent.
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Determine the price elasticity of demand if, in response to an increase in price of 10 percent, quantity demanded decreases by 20 percent.

User Sventies
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The price elasticity of demand would be -2. When you divide the change in quantity demanded (-20%) by the change in price (10%), as is required to obtain the price elasticity of demand, you get this result.
User Thedjpetersen
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