When 10 percent change in the price of good brings about a 20 percent change in its quantity demanded the price elasticity of demand is... we can say that demand for this good is...
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When 10 percent change in the price of good brings about a 20 percent change in its quantity demanded the price elasticity of demand is... we can say that demand for this good is...
percentage change in quantity demanded is divided by percentage change in price =20/10=2
it is elastic because e=2 is greater than 1
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