Economics 2281 · O Level · Price elasticity of demand (PED)

Price elasticity of demand (PED) — practice question

A mobile (cell) phone operator raises the charge for calls made on its network. Following the price rise, the operator’s revenue decreases by $10\%$. What is the price elasticity of demand (PED) for the mobile operator’s service?

  • Aelastic
  • Binelastic
  • Cperfectly elastic
  • Dunit elastic

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