Question

The price elasticity of demand of colour TVs is estimated to be -2.5. If the price of colour TVs are reduced by 20 percent, how much percentage increase in the quantity of colour TVs sold do you expect?​

Answer 1

Answer:

plz mark me as brianlist

Answer 2

Answer:

50% increase in the quantity demanded of colour TVs

Explanation:

Ped  = Change in quantity demanded% / Change in price%

Price elasticity of demand= (-2.5)

Change in Price reduced  =(-20%)

           -2.5 =   Change in quantity demanded %  /   - 20%

             Change in quantity demanded = -20 * -2.5

           Change in quantity demanded = 50%