The absolute value of the price elasticity of demand is 1.35.
In this case, demand is elastic.
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