Question #106617

if a monopolist sell 10 units at a price of $5 and 15 units at a price of $4 what is elasticity of demand

Expert's answer

"E=|\\frac {(Q2-Q1)}{Q1}\n""\u00d7\\frac {P1}{P2--P1}|;"

"E=|5\/10\u00d75\/(-1)|=|0.5\u00d7(-5)|=" % "2.5"

answer: demand will increase by 2.5% with a decrease in price by 1%.

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