a major cereal producer decides to lower prices from $3.60 to $3 per 15-ounce box.?

by Walmart Stores
Question by Brittany: a major cereal producer decides to lower prices from .60 to per 15-ounce box.?
A. If quantity demanded increases by 18 percent, what is the price elasticity of demand?


Best answer:
Answer by AnjareeThe price decreases from $ 3.60 to $ 3 or 20%, the quantity demanded increases 18%, so the elasticity=18/20=0.9, inelastic.

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