Question

Complete the formula for elasticity of demand. Then, answer the question. Answer Bank percentape change in price elasticity of demand percentage change in quantity demanded Suppose after an early-season hurricane destroys the grapefruit harvest in Texas, prices increase by 15%. As a result, the quantity demanded decreases by 8%, Calculate the elasticity of demand to two decimal places, and remember to use Complete the formula for elasticity of demand. Then, answer the question. Answer Bank percentage change in price elasticity of demand percentage change in quantity demanded Suppose after an early-season hurricane destroys the grapefruit harvest in Texas, prices increase by 15%. As a result, the quantity demanded decreases by 8%. Calculate the elasticity of demand to two decimal places, and remember to use

Answer 1

The formula for elasticity of demand is the percentage change in quantity demanded divided by the percentage change in price. In this case, the elasticity of demand is approximately -0.53.

Step-by-step explanation:

The formula for elasticity of demand is the percentage change in quantity demanded divided by the percentage change in price.

In this case, the percentage change in price is 15% and the percentage change in quantity demanded is -8%. To calculate the elasticity of demand, we divide -8% by 15%. This gives us an elasticity of demand of approximately -0.53.