Suppose favorable weather increased the supply of tomatoes so that the price of tomatoes fell from US$45 a ton to US$35 a ton and quantity sold increased from 300 tons to 420 tons. What is the value of the price elasticity of demand? Show your work.
Added by Natalia S.
Step 1
Given: Old quantity (Q1) = 300 tons New quantity (Q2) = 420 tons Percentage change in quantity = ((Q2 - Q1) / Q1) * 100 Percentage change in quantity = ((420 - 300) / 300) * 100 Percentage change in quantity = (120 / 300) * 100 Percentage change in quantity = 40% Show more…
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