Tuesday, January 26, 2010

Tvs For Eliptical What Is The Percentage Decrease In Quantity Demanded Of TVs At The Orginal Price?

What is the percentage decrease in quantity demanded of TVs at the orginal price? - tvs for eliptical

Suppose the first prize of $ 200, sells 40 TVs were, every week, and if the price rose to $ 210, quantity demanded to 30 televisions.
What is the percentage decrease in quantity demanded of TVs at the original price?

A) 1.33%

B) 25%

C) 33%

D) 75%

E) 133%

I know the answer, but I do not know how to calculate it. Can someone show me?

1 comment:

  1. The answer is coreect B) 25%.

    Here's how:

    Percentage decrease in quantity demanded of TVs is

    New amount - original amount
    -------------------------------------- ... X 100%
    Initial amount

    30 to 40
    ---------- X 100%
    40

    -10
    ------ X 100%
    40

    -1000
    --------
    40

    = -25% = 25% (excluding the minus sign).

    The negative sign indicates an inverse relationship between price and quantity.

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