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

1 answer

The absolute value of the price elasticity of demand is 1.35.

In this case, demand is elastic.