Suppose that during the past year, the price of a laptop computer fell from $2,350 to $1,930. During the same time period, consumer sales increased from 436,000 to 537,000 laptops.

Calculate the elasticity of demand between these two price

Question

Business

Mylie Vance

15 November, 05:31

Suppose that during the past year, the price of a laptop computer fell from $2,350 to $1,930. During the same time period, consumer sales increased from 436,000 to 537,000 laptops.

Calculate the elasticity of demand between these two price

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Answers (1)

Know the Answer?

Nadia Hammond · Answer 1

-1.06

Explanation:

The computation of the elasticity of demand between these two price is shown below:

(A) (B) (A + B) : 2 (B - A)

Particulars Original New Average Change Percentage in change

Quantity 436000 537000 486500 101000 20.76%

Price $2,350 $1,930 $2,140 $-420 - 19.63%

As we know that

Price elasticity of demand = (Percentage change in quantity demanded) : (percentage change in price)

= 20.76% : - 19.63%

= - 1.06

Suppose that during the past year, the price of a laptop computer fell from $2,350 to $1,930. During the same time period, consumer sales increased from 436,000 to 537,000 laptops.Calculate the elasticity of demand between these two price

Suppose that during the past year, the price of a laptop computer fell from $2,350 to $1,930. During the same time period, consumer sales increased from 436,000 to 537,000 laptops.

Calculate the elasticity of demand between these two price