Suppose a local bank increases the fees they charge for their bank accounts by 10 percent. In response, the demand for their bank accounts decreases from 40,000 to 30,000. What is price elasticity of demand for this bank's accounts? Using the midpoint formula, the price elasticity of demand is (Enter your response rounded to two decimal places.)

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter6: Elasticities
Section: Chapter Questions
Problem 6P: Explain why using the midpoint formula for calculating the elasticity of demand gives the same...
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Suppose a local bank increases the fees they charge for their bank accounts by 10 percent. In response, the demand
for their bank accounts decreases from 40,000 to 30,000. What is price elasticity of demand for this bank's accounts?
Using the midpoint formula, the price elasticity of demand is. (Enter your response rounded to two
decimal places.)
Transcribed Image Text:Suppose a local bank increases the fees they charge for their bank accounts by 10 percent. In response, the demand for their bank accounts decreases from 40,000 to 30,000. What is price elasticity of demand for this bank's accounts? Using the midpoint formula, the price elasticity of demand is. (Enter your response rounded to two decimal places.)
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