contestada

​Willie's widgets currently sell for ​$17 each. At that​ price, Willie has sold 49 comma 000 widgets. Willie would like to maximize his​ revenue, so he raises the price of a widget to ​$20 each. Willie has seen the sales of his widgets drop only slightly to 46 comma 000. Using the​ initial-value method, the price elasticity of demand for​ Willie's widgets is 0.00. ​(Enter your response as an absolute value rounded to two decimal​ places.) We can conclude that the demand for​ Willie's widgets under these conditions is_____________.

Respuesta :

Answer:

-0.43333 and inelastic

Explanation:

The computation of the price elasticity of demand using the initial value method is shown below:

= Change in quantity demanded ÷ Change in price

where,

Change in quantity demanded equals to

= (46,000 - 49,000) ÷ (46,000)

= -0.065

Change in price

= ($20 - $17) ÷ ($20)

= 0.15

So, the price elasticity of demand is

= -0.065 ÷ 0.15

= -0.43333

As the price elasticity of demand shows a negative value which results the demand is inelastic in nature

Answer:

180007.99

Explanation:

Because it is greater

Otras preguntas