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12 July, 07:36

Suppose there is a 6 percent increase in the price of good x and a resulting 6 percent decrease in the quantity of x demanded. Price elasticity of demand for x is

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  1. 12 July, 11:28
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    1

    Explanation:

    Data provided in the question

    Increase in price of good X = 6%

    Decrease in the quantity of X = 6%

    So, The formula to compute the price elasticity of demand is shown below:

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

    = 6% : 6%

    = 1

    So, the price elasticity of demand is 1
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