Question

a car manufacturer introduced their new model at $20,000. they made an estimated revenue of 30 million dollars. once they decided to increase the price to $25,000, their demand decreased by 20%. what is the elasticity of demand?

Answer 1

Divide the percentage change in price by the percentage change in quantity demanded to get the price elasticity of demand.

In the price range of R20 to R19, what is the price elasticity of demand for pens?

Pens drop from R20 to R19 in price, while demand for pen quantities rises from 5,000 to 10,000. The price elasticity of demand (Ed) is 1.32, which indicates that demand is elastic when Ed's value is greater than or equal to 1.

How can price elasticity be determined?

The responsiveness of a good's demand or supply to a change in its price is measured by price elasticity. It is calculated by dividing the percentage change in price by the percentage change in quantity demanded or supplied.

Total revenue will increase as a result of a $10 price reduction: increase by $1,500, and the demand curve will become more flexible.

The quantity demanded decreases from 500 to 400, while the price of good X rises from $55 to $60. The quantity demanded decreases from 500 to 475, while the price of good Y rises from $55 to $60.

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