The formula for measuring Price Elasticity of Demand is as follows:
$$\frac{\Delta Q}{\Delta P} \times \frac{P_1 + P_2}{Q_1 + Q_2}$$
Complete the following table to indicate what each of the above symbols stands for:
| Symbol | Description |
|--------|-------------|
| \Delta Q | |
| \Delta P | |
| P_1 | Original price of the good - Leaving Cert Economics - Question 4 - 2008
Question 4
The formula for measuring Price Elasticity of Demand is as follows:
$$\frac{\Delta Q}{\Delta P} \times \frac{P_1 + P_2}{Q_1 + Q_2}$$
Complete the following table t... show full transcript
Worked Solution & Example Answer:The formula for measuring Price Elasticity of Demand is as follows:
$$\frac{\Delta Q}{\Delta P} \times \frac{P_1 + P_2}{Q_1 + Q_2}$$
Complete the following table to indicate what each of the above symbols stands for:
| Symbol | Description |
|--------|-------------|
| \Delta Q | |
| \Delta P | |
| P_1 | Original price of the good - Leaving Cert Economics - Question 4 - 2008
Step 1
\Delta Q
96%
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Answer
Change in quantity demanded.
Step 2
\Delta P
99%
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Answer
Change in Price.
Step 3
P_2
96%
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Answer
New / current price of good.
Step 4
Q_1
98%
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Answer
Original quantity demanded of the good.
Step 5
Q_2
97%
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Answer
New / current quantity demanded of the good.
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