NefesShoes is the top seller of handmade women’s shoes on Etsy. The company observes that when it increases the price of its Mary Jane style shoes by 18%, revenue increases by 31%. Based on this information, the demand for NefesShoes’ handmade Mary Jane style shoes is:
Calculating Price Elasticity of Demand
Price Elasticity of Demand = % change in quantity demanded -: % change in price
(Q2 - Q1) -: (Q1 + Q2)/2 -: (P2 - P1) -: (P1 + P2)/2
Question 34Select one:
a.
Unit elastic.
b.
Inelastic.
c.
Perfectly elastic.
d.
Elastic.