Question

Explain what is meant by a price elasticity of demand value of -1.06 for recreation, with reference to why it is negative

Answer 1

Explanation:

What Does a Price Elasticity of 1.5 Mean? If the price elasticity is equal to 1.5, it means that the quantity demanded for a product has increased 15% in response to a 10% reduction in price (15% / 10% = 1.5).