When the price of toothpaste increases by 15 percent, the quantity of toothpaste demanded falls by 30 percent. Calculate the price elasticity of demand. Is the demand for toothpaste elastic, inelastic, or unit elastic?
What will be an ideal response?
Price elasticity of demand = [-30/15] = -2 . Since the absolute value of the price elasticity is greater than one, the demand for toothpaste is elastic.
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The Denver Broncos is a football team in the NFL, the Colorado Crush is an arena football team, and the Highlands Ranch Falcons is a local High School team
Broncos tickets cost about $415, the Crush cost between $30 and $85 and Falcons tickets are $6. What do the prices per unit tell you about the marginal utility from each of these football games? A) The marginal utility will be equal from each game. B) The marginal utility will be greatest from a Crush game. C) The marginal utility will be greatest from a Falcons game. D) The marginal utility will be greatest from a Broncos game.
Describe the consumer equilibrium in the indifference curve/budget line model
What will be an ideal response?