Question
Suppose the price of good X increases from $2 to $4 (so P1=$2 & P2=$4). As a result, quantity demanded falls from 500 to 300
Suppose the price of good X increases from $2 to $4 (so P1=$2 & P2=$4). As a result, quantity demanded falls from 500 to 300 (Q1=500 & Q2=300). Calculate the price elasticity of demand. Is it elastic or inelastic? How do we know?
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Principles of Microeconomics
Authors: N. Gregory Mankiw
8th edition
1305971493, 978-1305971493
