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1. When the local grocery store puts laundry detergent on sale, reducing its price from $4.30 per item to $3.70 per item, the quantity sold increases from 220 per week to 240 per week. This response illustrates which of the following concepts?
Hint
Box 1: Select the best answer
2. What does this concept represent?
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Box 1: Select the best answer
3. Let's look at the first part of the formula. How do we find the percentage change in quantity using the midpoint formula?
Hint
Box 1: Select the best answer
4. How do we express the percentage change in quantity using the variables Q1 (original quantity) and Q2 (new quantity)?
Hint
Box 1: Select the best answer
5. Now calculate the percentage change in quantity demanded by plugging in the numbers for Q1 and Q2.
percentage change in quantity demanded =
percentage change in quantity demanded =
Hint
Box 1: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172
Enter DNE for Does Not Exist, oo for Infinity
6. Now let's look at the second part of the formula. How do we find the percentage change in price using the midpoint formula?
Hint
Box 1: Select the best answer
7. How do we express this using the variables P1 (original price) and P2 (new price)?
Hint
Box 1: Select the best answer
8. Now plug in the numbers for P1 and P2 to calculate the percentage change in price.
Box 1: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172
Enter DNE for Does Not Exist, oo for Infinity
9. Finally, using the whole formula, calculate the value of the price elasticity of demand for laundry detergent.
price elasticity of demand =
price elasticity of demand =
Hint
Box 1: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172
Enter DNE for Does Not Exist, oo for Infinity
10. Explain what this result means in words. Then click 'Submit' to compare your answer to ours.
Hint
Box 1: Enter your answer as text. This question is not automatically graded.