Answer :
Answer:
Price elasticity demand for input = 0.60
Explanation:
Price elasticity of demand (PED) is the degree of responsiveness of demand to a change in price.
Where a percentage change in price produces a more than a proportional change in quantity, we say the product is price elastic. On the other hand, where a change in price produces a less than a proportional change in quantity demand, then demand is price inelastic
PED is computed as follows:
PED = % change in quantity /% change in Price
% change in demand = (6-15)/15 × 100 = 60%
% change in price = (4-2 )/2× 100= 100%
PED = 60%/100% = 0.60
Price elasticity demand for input = 0.60