Asked by Lupe

If the price elasticity is equal to 2, a 1percent increase in price will cause the quantity demanded to........from 200units to .......units
Answered by Writeacher
assistance needed
Answered by economyst
price elasticity is (%change Q)/(%change P). (Note: price elasticities are often expressed as a positive number, but in fact they should be negative).
You are given (%change P) = 1%. Soooo,
x/1% = -2, solve for x. Then apply that percentage change to 200 units