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The price elasticity of demand for eggs is -0.27. Therefore, an increase in the price of eggs will cause:_____

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User Chengsam
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Final answer:

The price elasticity of demand for eggs is -0.27, indicating that an increase in the price of eggs will cause a small decrease in the quantity demanded.

Step-by-step explanation:

The price elasticity of demand for eggs is -0.27, which indicates that demand for eggs is relatively inelastic. This means that an increase in the price of eggs will result in a proportionally smaller decrease in the quantity demanded. In other words, consumers are not very responsive to changes in price when it comes to purchasing eggs.

For example, if the price of eggs were to increase by 10%, the quantity demanded would only decrease by approximately 2.7%. This is because eggs are considered a necessity and consumers are less likely to significantly reduce their consumption even if the price increases.

Therefore, an increase in the price of eggs will result in a small decrease in the quantity demanded.

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User Datadimension
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