Microeconomics Unit 5 Activity 54 Answers
ercentage change in price: 2. \[ \frac{12 - 10}{(12 + 10)/2} = \frac{2}{11} = 0.1818 \quad \Rightarrow 18.18\% \] Calculate elasticity: 3. \[ \frac{-22.22\%}{18.18\%} = -1.22 \] Since the absolute value is greater than 1, demand is elastic. This process illustrates how to