Price Elasticity - change in price, the good is said to be...

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Elasticity 1 Price Elasticity American InterContinental University Joe White
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Elasticity 2 I will be discussing in the following paper if I was a painter. While being a painter the price of paint went up from $3.00 to $3.50. Also during the price of paint going up my usage went down by 15 gallons a month. Affecting my price elasticity which is a measure that economists use to try to explain how much demand will change when there is a change in price. Price elasticity is calculated by dividing the proportionate change in quantity demanded by the proportionate change in price. When the proportionate change in quantity demanded is greater than the proportionate change in price, the good is said to be price elastic. The proportionate change in quantity demanded equals 15 the proportionate change in price equals 0.5. The elasticity will be calculated by dividing 15 by 0.5 equaling 30. When the proportionate change in quantity demanded is greater than the proportionate
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Unformatted text preview: change in price, the good is said to be price elastic. When the proportionate change in quantity demanded is less than the proportionate change in price, the good is said to be price inelastic. When the proportionate change in quantity demanded equals the proportionate change in price, the good is said to be unitary elastic. So my demand in paint is elastic. Since the proportionate change in quantity demanded is greater than the proportionate change in price. The demand is decreasing by 15 and the price is increasing by 0.5. So the proportionate demand in quantity is 15 and the proportionate change in price is 0.5. Which makes the demand greater than the price so that is the reason my price is elastic. Elasticity 3 References Price elasticity of demand. (n.d.). Retrieved August 26, 2009, from QuickMBA Web site: http://www.quickmba.com/econ/micro/elas/ped.shtml...
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Price Elasticity - change in price, the good is said to be...

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