a. To compute the price elasticity of demand, we divide the percentage change in _ by the percentage change in _ and then take the value of the ratio. b. If a 10 percent increase in...

a. To compute the price elasticity of demand, we divide the percentage change in _________ by the percentage change in _________ and then take the value of the ratio.

b. If a 10 percent increase in price decreases the quantity demanded by 12 percent, the price elasticity of demand is _________.

May 26, 2022