Suppose a local bank increases the fees they charge for their bank accounts by 5 percent. in response, the demand for their bank accounts decreases from 30 comma 000 to 2 comma 500. what is price elasticity of demand for this bank's accounts? using the midpoint formula, the price elasticity of demand is

-0.34

Explanation:

Given that,

Percentage increase in prices = 5%

Initial quantity demanded = 30,000

New quantity demanded = 2,500

By midpoint method,

Average quantity :

= (Initial quantity  + New quantity) ÷ 2

= (30,000 + 2,500) ÷ 2

= 16,250

Change in quantity = (2,500 - 30,000)

                                = -27,500

Therefore, the price elasticity of demand is as follows:

= (Change in demand ÷ Average quantity demanded) ÷ Percentage increase in prices

= (-27,500 ÷ 16,250) ÷ 5

= -1.69 ÷ 5

= -0.34

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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