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 |
|--------|-------------|
| $\Delta Q$ | Change in the quantity demanded of the good - Leaving Cert Economics - Question 6 - 2012
Question 6
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 |
|--------|-------------|
| $\Delta Q$ | Change in the quantity demanded of the good - Leaving Cert Economics - Question 6 - 2012
Step 1
$\Delta Q$
96%
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Answer
Change in the quantity demanded of the good.
Step 2
$\Delta P$
99%
104 rated
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Answer
Change in price.
Step 3
$P_1$
96%
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Answer
Original price.
Step 4
$P_2$
98%
120 rated
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Answer
New / Current Price.
Step 5
$Q_1$
97%
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Answer
Original quantity of the good demanded.
Step 6
$Q_2$
97%
121 rated
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Answer
New / current quantity of the good.
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