The following information pertains to three different products being sold by Leone Company:
$\begin{array}{rrrrr}
\underline{\text { Product }}&\underline{\text { Old Price }}&\underline{\text { New Price }} & \underline{\text { Old Quantity }} &\underline{ \text { New Quantity }}\
\mathrm{X} & \$ 15.00 & \$ 14.25 & 2,000 & 2,200 \
\mathrm{Y} & 20.00 & 18.50 & 3,000 & 3,300 \
\mathrm{Z} & 25.00 & 27.50 & 4.000 & 3.600
\end{array}$
a.Determine the price elasticity of demand for each of the products.
b.Which products have an elastic demand? Inelastic demand?

Question

The following information pertains to three different products being sold by Leone Company:
 $\begin{array}{rrrrr}
\underline{\text { Product }}&\underline{\text { Old Price }}&\underline{\text { New Price }} & \underline{\text { Old Quantity }} &\underline{ \text { New Quantity }}\
\mathrm{X} & \$ 15.00 & \$ 14.25 & 2,000 & 2,200 \
\mathrm{Y} & 20.00 & 18.50 & 3,000 & 3,300 \
\mathrm{Z} & 25.00 & 27.50 & 4.000 & 3.600
\end{array}$  
a.Determine the price elasticity of demand for each of the products.
b.Which products have an elastic demand? Inelastic demand?

Quizplus · Accepted Answer

The Answer of The following information pertains to three different products being sold by Leone Company:
 $\begin{array}{rrrrr}
\underline{\text { Product }}&\underline{\text { Old Price }}&\underline{\text { New Price }} & \underline{\text { Old Quantity }} &\underline{ \text { New Quantity }}\
\mathrm{X} & \$ 15.00 & \$ 14.25 & 2,000 & 2,200 \
\mathrm{Y} & 20.00 & 18.50 & 3,000 & 3,300 \
\mathrm{Z} & 25.00 & 27.50 & 4.000 & 3.600
\end{array}$  
a.Determine the price elasticity of demand for each of the products.
b.Which products have an elastic demand? Inelastic demand?

The Following Information Pertains to Three Different Products Being Sold