Rain spoils the strawberry crop, the price of strawberries rises from 2 to 4 a box, and the quantity demanded decreases from 1,400 to 1,000 boxes a week Calculate the price elasticity of demand over this price range. Describe the demand for strawberries. Over the price range of 2 to 4 the price elasticity of demand is square >>> Answer to 2 decimal places

Question

Rain spoils the strawberry crop, the price of strawberries rises from 2 to 4 a box, and the quantity demanded decreases from 1,400 to 1,000 boxes a week Calculate the price elasticity of demand over this price range. Describe the demand for strawberries. Over the price range of 2 to 4 the price elasticity of demand is square >>> Answer to 2 decimal places

Answer 1

To calculate the price elasticity of demand, we can use the following formula:Price Elasticity of Demand = (Percentage Change in Quantity Demanded) / (Percentage Change in Price)First, let's calculate the percentage change in quantity demanded:Percentage Change in Quantity Demanded = (New Quantity Demanded - Old Quantity Demanded) / Old Quantity Demanded * 100Percentage Change in Quantity Demanded = (1,000 - 1,400) / 1,400 * 100 = -28.57%Next, let's calculate the percentage change in price:Percentage Change in Price = (New Price - Old Price) / Old Price * 100Percentage Change in Price = (

2) / $2 * 100 = 100%Now, we can calculate the price elasticity of demand:Price Elasticity of Demand = (-28.57%) / (100%) = -0.2857Rounding to 2 decimal places, the price elasticity of demand is -0.29.The demand for strawberries is inelastic, as the price elasticity of demand is less than 1 in absolute value. This means that the quantity demanded is relatively insensitive to changes in price.

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