Calculate cost elasticity of demand for paint and show your, Ask an Expert

Economics

Q. You are a painter and cost of a gallon of paint increases from $3.00 a gallon to $3.50 a gallon. Your usage of paint drops from 35 gallons a month to 20 gallons a month. Perform following:

1.Calculate cost elasticity of demand for paint and show your calculations.

2. Decide where demand for paint is elastic, unitary elastic, or inelastic.

3. Elucidate your reasoning and interpret your results.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9293068

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