PRICE ELASTICITY OF DEMAND: % change in Q/demand % change in price
PERCENTAGE CHANGE: new number-old number X 100 average
REVENUE: Price X Quantity
Use the formula above to calculate values of price elasticity of demand for all the situations below. Make sure to show your calculations.
Price Initial 30 new 35: Quantity Initial 90 new 30 what is the % change in quantity demanded, % change in price, Elasticity of Demand and revenue in initial and new
Price Initial 50 new 80: Quantity Initial 110 new 80 what is the % change in quantity demanded, % change in price, Elasticity of Demand and revenue in initial and new
Price Initial 210 new 230: Quantity Initial 70 new 54 what is the % change in quantity demanded, % change in price, Elasticity of Demand and revenue in initial and new
Price Initial 60 new 85: Quantity Initial 140 new 125 what is the % change in quantity demanded % change in price Elasticity of Demand and revenue in initial and new
calculate the following: Price Elasticity of Demand, Percentage Change, Revenue
Describe the relationship between elasticity of demand and revenue when the prices are changed. [Hint: make sure to refer to the calculations]