For a certain good A, if the price falls from 6 to 4, the quantity demanded rises from 8000 to 12000. (i) Calculate the price elasticity of demand by using midpoints. Explain the meaning of the value of the elasticity found. (ii) What happens to turnover (Price * Quantity) as a consequence of the price change?

Answer rating: 100% (QA)

Price Elasticity of Demand for Good A i Calculation of Price Elasticity using Midpoints Calculate Mi... View the full answer