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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 1069 |
Essay's paper body
The negative value (minus sign) is ignored. The equation has concluded that the price elasticity of demand for the price increases from $9.00 to $10.00 is 2.4005.
The Interpretation of Ed reveals that it is not the numbers economists are interested in, but how the Price Elasticity of Demand shows consumer sensitivity...
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In T's Jean Shop, it is the customer's sensitivity to the increased price of the Capri jeans. The higher the price elasticity, the more sensitive consumers are to price changes.
High price elasticity suggests that when the price of good goes up, consumers will buy a great deal less of it and when the price of that good goes down, consumers will buy a great deal more...
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