If the price elasticity of demand for gasoline at the current price is .2, by how much must the price rise before consumers will reduce their consumption by 1%?
$.20 20% 5% $.02 It depends on the slope of the demand curve.
When the price of solar-powered flashlights is $2.00, buyers will buy 500. When the price is $1.00, they buy 750. The price elasticity of demand is:
1/2 3/5 1/3 2/3.