contestada

When the price of a diamond ring rises from $ 2 comma 000 to $ 3 comma 000​, the quantity demanded decreases from 13 comma 000 to 7 comma 000. Use this information to calculate the price elasticity of demand.

Respuesta :

Answer:

0.92

Step-by-step explanation:

The formula is demand% divided by price %

so....

change / original = 6000 divided by 13000 = 6/13 x 100 = 46.154%

again for price ...

change / original = 1000 divided by 2000 = 1/2 x 100 = 50%

46.154 divided by 50 = 0.92308

therefore it is price in elastic as it is less than 1

hope this helps!