Willie's widgets currently sell for $17 each. At that price, Willie has sold 49 comma 000 widgets. Willie would like to maximize his revenue, so he raises the price of a widget to $20 each. Willie has seen the sales of his widgets drop only slightly to 46 comma 000. Using the initial-value method, the price elasticity of demand for Willie's widgets is 0.00. (Enter your response as an absolute value rounded to two decimal places.) We can conclude that the demand for Willie's widgets under these conditions is.

-0.43333 and inelastic

Explanation:

The computation of the price elasticity of demand using the initial value method is shown below:

= Change in quantity demanded ÷ Change in price

where,

Change in quantity demanded equals to

= (46,000 - 49,000) ÷ (46,000)

= -0.065

Change in price

= ($20 - $17) ÷ ($20)

= 0.15

So, the price elasticity of demand is

= -0.065 ÷ 0.15

= -0.43333

As the price elasticity of demand shows a negative value which results the demand is inelastic in nature

its kinda hard to answer this when we dont have all the information that we need.

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