The Great Upheaval. A Spontaneous Eruption. It started with a 10% pay cut. When leaders of the Baltimore and Ohio Railroad Company ordered this second reduction in less than eight months, railroad workers in Martinsburg, West Virginia decided they had had enough.
According to this method, âprice elasticity of demand is the ratio of percentage change in the amount demanded to the percentage change in price of the commodity.â. It is also known as the Percentage Method, Flux Method, Ratio Method, and Arithmetic Method.
1.The price elasticity of demand is: a) the ratio of the percentage change in quantity demanded to the percentage change in price. b) the responsiveness of revenue to a change in quantity. c) the ratio of the change in quantity demanded divided by the change in price. d) the response of revenue to a change in price.2.If demand is price elastic, then: a) a rise in price will raise total revenue. b) a fall in price will raise total revenue. c) a fall in price will lower the quantity demanded.. Suppose we know that the price elasticity of demand of good X is equal to -1.2. Then, if its price will increase by 5%, we can predict with certainty that. a) quantity demanded of that good will increase.