Need marketing help with a Homework question about price elasticity of demand

Anonymous
timer Asked: Nov 23rd, 2015
account_balance_wallet $5

Question Description

John, the new marketing manager of Doc’s Cola recently decided to increase the bottle of soda by 5 cents. He needs to calculate the correct formula for the calculation of price elasticity of demand. Which calculation below is the correct formula for price elasticity?

E = percent change in price/percent change in demand

E = percent change in demand/percent change in price

E = percent change in demand/percent change in supply

E = percent change in supply/percent change in demand

Tutor Answer

Doctor_Ralph
School: Rice University

Thank you for the opportunity to help you with your question!

E = percent change in demand/percent change in price

The Price Elasticity of Demand  measures the rate of response of quantity demanded due to a price change.

Please let me know if you need any clarification. I'm always happy to answer your questions.

flag Report DMCA
Review

Anonymous
Goes above and beyond expectations !

Similar Questions
Hot Questions
Related Tags
Study Guides

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors