Practice question · Estimate
If and price rises 20%, quantity falls by:
Estimate on a scale from 0% (0) to 30% (30).
Hints
- Multiply the elasticity by the percentage price change.
- A magnitude below one means the response is proportionally smaller.
Show the answer
10 (answers within ±2 count)
Why
. Inelastic demand: quantity falls by only half the percentage price increase.
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