Question

skip's sealcoating service increased its total monthly revenue from $12,000 to $13,500 when it raised the price of driveway repairs from $600 to $750. the price elasticity of demand for skip's sealcoating service is a.2.11. b.0.11. c.1.12. d.0.47.

Answer 1

The price elasticity of demand is calculated using the midpoint formula by dividing the percentage change in purchase quantity by the price change.

By subtracting the initial and updated values, as well as their averages, we may get the percentage changes.

% QD change resulting in P change?

Price elasticity of demand is a term used to describe how sensitive consumers are to price changes. Equation for price elasticity: Ed = percentage change in Price / percentage change in Qd.

Q/P Change = Midpoint Education The average of P and Q.

Point Ed = (Change in Q / Change in P)

(Original P before modification/Original Q before modification)

0.47

Learn more about Point Ed here:

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