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Q.18

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Economics Today
Found in: Page 435

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Short Answer

Take a look at Figure 19-2. Work out the calculation for the price elasticity of demand between prices of $ 11 per reservation and $ 10 per reservation to prove that the value is 21.

the price elasticity of demand is

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Step by Step Solution

Step 1: Given Information

Price elasticity of demand estimates how much the interest for the ware changes with one unit change in the cost of the item.

Step 2: Explanation

We know price elasticity demand is

Q is the quantity of the demanded goods and P is the price

Hence the price elasticity of demand is

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