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According to the text, the price elasticity of demand for bath tissue has been estimated to be -2.42. This implies that a 10 percent decrease in the price of bath tissue would cause the quantity demanded
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According to the text, the price elasticity of demand for bath tissue has been estimated to be -2.42. This implies that a 10 percent decrease in the price of bath tissue would cause the quantity demanded of bath tissue to:_____________.

User Chris Schiffhauer
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2 votes

Answer:

24%

Step-by-step explanation:

Price elasticity denotes the percentage change in quantity demanded in response to certain percentage change in price. Elasticity of price is calculated as follows:

Elasticity of price = % change in quantity / % change in price

-2.42 = % change in quantity / 10%

% change in quantity = 2.42 * 10%

% change in quantity = 24.2%

User Bhushan Dhamdhere
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