Suppose the price elasticity of demand for a good is -0 2 If there is a 5 per cent - Economics - Production and Costs

Question

Suppose the price elasticity of demand for a good is -0 2 If there
is a 5 per cent increase in the price of the good, by what
percentage will the demand for the good go down?

Mohit · Accepted Answer

Dear Student,
Here is your answer,
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Regards

Suppose the price elasticity of demand for a good is -0.2. If there is a 5 per cent increase in the price of the good, by what percentage will the demand for the good go down?