Calculate the price elasticity of demand for each group

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Reference no: EM131006557

The makers of academic books find that when they raise the price of the average book from $60 to $95, quantity demanded among students drops from 100 to 85. Among casual readers, quantity demanded drops from 80 to 35.

A) Calculate the price elasticity of demand for each group. Please type the formula & calculations in your answer.

B) Is demand price elastic or inelastic for each group?

C) Using the determinants of demand, explain why there is a difference in elasticity for each group.

Reference no: EM131006557

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