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If the quantity of balnket demanded increases from 4600 to 5700 in response to a decrease in their price from 220 to 190 the price elasticity of demand for blankets is a.0.69 b 1.0 c 1.46 d 2.66 can someone explain this answer correct answer is a?
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If the quantity of balnket demanded increases from 4600 to 5700 in res...
Its ans is c opt apply formula of ace elasticity e=d.q/d.p *p1+p2/q1+q2
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If the quantity of balnket demanded increases from 4600 to 5700 in res...
Explanation:

Price Elasticity of Demand: It measures the sensitivity of quantity demanded to changes in price.

Formula: Price Elasticity of Demand = (% Change in Quantity Demanded) / (% Change in Price)

Given:
Initial Quantity Demanded (Q1) = 4600
Final Quantity Demanded (Q2) = 5700
Initial Price (P1) = 220
Final Price (P2) = 190

Step 1: Calculate the % Change in Quantity Demanded
% Change in Quantity Demanded = ((Q2 - Q1) / Q1) x 100
% Change in Quantity Demanded = ((5700 - 4600) / 4600) x 100
% Change in Quantity Demanded = 23.91%

Step 2: Calculate the % Change in Price
% Change in Price = ((P2 - P1) / P1) x 100
% Change in Price = ((190 - 220) / 220) x 100
% Change in Price = -13.64%

Step 3: Calculate the Price Elasticity of Demand
Price Elasticity of Demand = (% Change in Quantity Demanded) / (% Change in Price)
Price Elasticity of Demand = 23.91% / -13.64%
Price Elasticity of Demand = -1.75

Step 4: Take the Absolute Value of Price Elasticity of Demand
Price Elasticity of Demand = | -1.75 |
Price Elasticity of Demand = 1.75

Step 5: Compare the Price Elasticity of Demand with 1
As the Price Elasticity of Demand is less than 1, it means that the demand for blankets is relatively inelastic. Therefore, the correct answer is a. 0.69.

Conclusion: The price elasticity of demand for blankets is 0.69, which means that the demand for blankets is relatively inelastic.
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If the quantity of balnket demanded increases from 4600 to 5700 in response to a decrease in their price from 220 to 190 the price elasticity of demand for blankets is a.0.69 b 1.0 c 1.46 d 2.66 can someone explain this answer correct answer is a?
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If the quantity of balnket demanded increases from 4600 to 5700 in response to a decrease in their price from 220 to 190 the price elasticity of demand for blankets is a.0.69 b 1.0 c 1.46 d 2.66 can someone explain this answer correct answer is a? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If the quantity of balnket demanded increases from 4600 to 5700 in response to a decrease in their price from 220 to 190 the price elasticity of demand for blankets is a.0.69 b 1.0 c 1.46 d 2.66 can someone explain this answer correct answer is a? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If the quantity of balnket demanded increases from 4600 to 5700 in response to a decrease in their price from 220 to 190 the price elasticity of demand for blankets is a.0.69 b 1.0 c 1.46 d 2.66 can someone explain this answer correct answer is a?.
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