Question
Use the formula above to calculate values of Price Elasticity for all the situations below: Price Quantity % change in quantity demanded % change in
Use the formula above to calculate values of Price Elasticity for all the situations below:
Price
Quantity
% change in quantity demanded
% change in price
Elasticity of Demand
Is it elastic / unitary elastic / inelastic?
Initial
New
Initial
New
25
30
100
40
60
20
3
Elastic
40
70
120
90
25
75
.33
Inelastic
200
220
80
64
20
10
3.2
50
75
150
135
10
50
4.2
Step 2 - What determines E L A S T I C I T Y?
Product
Elastic or inelastic?
Why?
Salt
Hawaiian Vacation
Apple iPhone
Cigarettes
Tap Water
Gasoline
Dasani Water
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
12th Edition
978-0073526706, 9780073526706
