Home /
Expert Answers /
Economics /
7-suppose-that-200-000-uber-trips-are-taken-every-day-in-new-york-city-and-suppose-that-the-elasti-pa357
(Solved): 7. Suppose that 200,000 Uber trips are taken every day in New York City and suppose that the elasti ...
7. Suppose that 200,000 Uber trips are taken every day in New York City and suppose that the elasticity of demand for an Uber trip is -0.5. If the price increased by \( 10 \% \) how many Uber trips would be taken in a day?
Expert Answer
The price elasticity of demand at -0.5 means that the proportionate inverse change in the quantity demanded will be 0.5 t