Suppose that Bobo purchases 1 pizza per month when the price is $19 and 3 pizzas per month when the price is $15. What is the price elasticity of Bobo's demand curve?
Added by Michael V.
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Given: Initial quantity (Q1) = 1 pizza Final quantity (Q2) = 3 pizzas Percentage change in quantity demanded = ((Q2 - Q1) / ((Q2 + Q1) / 2)) * 100 = ((3 - 1) / ((3 + 1) / 2)) * 100 = (2 / (4 / 2)) * 100 = (2 / 2) * 100 = 100% Show more…
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