Answer to Question #324279 in Microeconomics for Gigi

Question

Suppose that the price elasticity of demand for maple syrup has been estimated at -4. If quantity

demanded increased by 10 percent, price must have changed by

Answer 1

If the price elasticity of demand for maple syrup has been estimated at -4, and the quantity demanded increased by 10 percent, then price must have changed by $10/4 = 2.5$ percent.