Price elasticity of demand for widgets is 0.80. Assuming no change in the demand curve for widgets,?

Question

a 16 percent increase in sales implies?

a) 1% reduction in price, b)12%, c)40, d)20

Answer 1

any more detail message giving ??

Answer 2

d)20

ΔQ%=+16%

E= | ΔQ% / ΔP% | = 0.80

0.80 = 16/ΔP%

ΔP% = 16 / 0.8 = (-) 20%

Answer 3

do  your own mid term exam ( quizz # 3) i will see you in class monday, ur a cheater read the book