Question

as the price of peanuts packets increases by 5% the number of peanut packets demanded falls by 8% what is the elasticity of demand of peanut packets ​

Answer 1

Answer:

Explanation:

Change in price             (ΔP)  =   5%

Change in quantity       (ΔQ)  =   8%

Ep = % change in quantity demanded/ % change in price

    =  8/5

    = 1.6 (Elastic demand)