Calculating price elasticity of demand

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(Calculating Price Elasticity of Demand) Suppose that 60 units of a good are demanded at a price of $6 per unit. A reduction in price of $0.70 results in an increase in quantity demanded 75 to units. Show that these data yield a price elasticity of ____. By what percentage would a 7 percent rise in the price reduce the quantity demanded, assuming price elasticity remains constant along the demand curve?

 

 

Reference no: EM13825190

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