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# Price elasticity of demand for Michelle’s muffins is 1.7 in California while sold for \$3.00 per muffin. If the price was to increase to \$3.30 what percentage decline would we expect in the quantity demanded?

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 ▲ 0 ▼ ♥ 0 Price elasticity of demand for Michelle’s muffins is 1.7 in California while sold for \$3.00 per muffin. If the price was to increase to \$3.30 what percentage decline would we expect in the quantity demanded?

 ▲ 0 ▼ ✔ Private answer Price elasticity of demand for Michelle’s muffins is 1.7 in California while sold for \$3.00 per muffin. If the price was to increase to \$3.30 what percentage decline would we expect in the quantity demanded? Top of Form Answer Quantity demanded will decline by 17% Explanation: Price elasticity of demand = 1.7 PED = %change in quantity demanded / %change in price PED = 1.7 %change in quantity demanded = ? %change in price = (\$3.3 – \$3) / \$3 * 100% 3 / 3 * 100% = 10% PED = %change in Q / %change in P 1.7 = %Q / 10% %Q = 10% * 1.7 %Q = 17% The quantity will change by 17% Since quantity demanded and price are negatively related, an increase in one causes a decrease in the other. If price increases, quantity demanded decreases Quantity demanded will therefore decrease by 17%   Marked as spam Answered on June 21, 2020 5:56 pm

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