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Price elasticity of demand= percentage change in demand/percentage cgange in price 2 = % chnge in demand/10 % change in demand= 2*10 % change in demand= 20%

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when the price of a good increased by 2%,the quantity demanded of it decreased by 10% the price elasticity of demand of demand is

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Q: When a price of a good increased by 2 percent the quantity demanded decreased by 10 percent What is the price elasticity of demand?
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Related questions

Suppose the elasticity of demand for cereal is 1 if cereal increases in price by 25 percent how much will the quantity demanded decreased by?

25 percent


Price elasticity of demand in the marker place?

Price elasticity of demand is the responsiveness of quantity demanded of a good to a change in its price.Basically it describes how consumers react to a price change.The price elasticity of demand is calculated byPED= %Quantity demanded : % Change of Priceor in words: the percentage change in the quantity demanded divided by the percentage change in price


What is the price of elasticity of demand?

The responsiveness of quantity demanded to changes in the price of a good


The price elasticity of demand is a measure of the?

responsiveness of a quantity demanded to a change in price


The price elasticity of demand measures the responsiveness of quantity demanded to a change in price?

true


The price elasticity of demand measures the responsiveness of quantity demanded of a good to its price?

4.345


When price goes down the quantity demanded goes up Price elasticity measures how?

True


The concept used by economics to indicate the response of quantity demanded to a change in price is known as?

elasticity


How you can find price elasticity of demand if quantity of demand and price is given?

by the formula : %changge in quantity demanded/% change in price of good


Why elasticity of demand is measured in percentage?

Price elasticity can be precisely measured by dividing the percentage change on quantity demanded by the percentage change in price that caused it. Thus e can measure price elasticity by using the formula Price elasticity = Percentage change in quantity demanded ÷ percentage change in price


What does the elasticity of demand refers to?

it refers to the the responsiveness of quantity of goods demanded by consumers when there is a change in price level. The formula PED is percentage change in quantity demanded divided by percentage change in price of that particular good.


How do you compute price elasticity of demand?

Price Elasticity of Demand = Percentage change in Quantity Demanded/ Percentage change price ep = dQ/dP . P/Q