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

Price elasticity of demand (PED) — practice question

A railway company raises ticket prices by 10% for journeys between 06:00 and 09:00, and demand falls by 2%. After 09:00 it cuts ticket prices by 5%, which leads to a 7% rise in demand. What is the price elasticity of demand in response to these price changes?

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