3. The quantity demanded for chickens decreased by 2% when prices rose by 8%. By substituting,...

3. The quantity demanded for chickens decreased by 2% when prices rose by 8%. By substituting, in the equation Ep, the result is (-.50). Notice a negative result.

              a) Why is there an inverse relationship between quantity and price?


              b) is elastic or inelastic.


              c) What does a ratio of change of 8: 2 mean?

Expert Solution

Rahul Sunny answered 2 years ago

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