Work out the PED for each, and comment on your result. The price of a smartphone is currently £200, and the quantity demanded is 4m. Next year the price falls to £180 and the quantity demanded rises to 6m. The price of pens today is £1, and the quantity demanded is 1m. Next year the price rises to £1.10 and the quantity demanded falls to 950,000. The price of a daily newspaper today is £1.50p, and the quantity demanded is 2m. Next year the price falls by 30p and the quantity demanded rises to 2.2m Question 2

a.) PED = 5

b.) PED = 5

c.) PED = 0.05

Step-by-step explanation:

Here , PED = Price elasticity of demand

a.)

Given - The price of a smartphone is currently £200, and the quantity demanded is 4m. Next year the price falls to £180 and the quantity demanded rises to 6m.

PED = (Change in quantity demanded)×

Now,

Change in quantity demanded = =

⇒PED = × = 5

b.)

Given -The price of pens today is £1, and the quantity demanded is 1m. Next year the price rises to £1.10 and the quantity demanded falls to 950,000.

Change in quantity demanded = =

⇒PED = × = 5

c.)

Given -The price of a daily newspaper today is £1.50p, and the quantity demanded is 2m. Next year the price falls by 30p and the quantity demanded rises to 2.2m

Change in quantity demanded = =

⇒PED = × = = = 0.005

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step-by-step explanation:

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step-by-step explanation: