Question
I need to calculate the elasticity coefficient c. Using the price and quantity you've identified, consider what would happen if this price were to increase
I need to calculate the elasticity coefficient
c. Using the price and quantity you've identified, consider what would happen if this price were to increase by 10%. Estimate the new industry quantity based on your statement in answer a. about whether or not this industry would be elastic or inelastic( I am doing ipads and i said its inelastic in q a) . Calculate the elasticity coefficient based on your price and quantity estimates and the industry revenue before and after the price increase.
i Also am not sure on how to get the ED like (-2.5 or 2.5 etc)
Price: 429$ CAD
Quantity: 12.9 million units
Rev: 5.5 $ (million)
P increased by 10% : 471$
Ed= % Q/ % P (not sure how to calculate this)
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