If the elasticity of demand for spring break packages to cancun is -5 , and if you notice that this year in cancun the quantity of packages demanded increased by 10% , then what happened to the price of cancun vacation packages ?

Price reduced by 2%

Explanation:

The price elasticity of demand shows how the demand for a good will change as a result of a change in price. Demand will usually increase as a result of a decrease in price because people tend to demand more when goods are cheaper.

The formula is;

Price elasticity of demand = ΔQuantity demanded / Δ Price

-5 = 10% / P

-5P = 10%

ΔP = -2%

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20

lots of credit card rewards