Question
A ski rental store raised
the price of rental skis from $12
to $14
per day. Correspondingly, sales fell
from 2 comma 500
rentals to 1 comma 800
rentals per month.
Using average values to calculate percentage changes, the absolute value of the price elasticity of demand is enter your response here
.
(Enter your response rounded to two decimal places.)
Part 2
In this case, demand is
▼a. elastic
b. indeterminate
c. indeterminate
the price of rental skis from $12
to $14
per day. Correspondingly, sales fell
from 2 comma 500
rentals to 1 comma 800
rentals per month.
Using average values to calculate percentage changes, the absolute value of the price elasticity of demand is enter your response here
.
(Enter your response rounded to two decimal places.)
Part 2
In this case, demand is
▼a. elastic
b. indeterminate
c. indeterminate
Answers
GPT 3.5
The absolute value of the price elasticity of demand is 1.35.
In this case, demand is elastic.
In this case, demand is elastic.