ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When price of a good is RS 13 per unit the consumer buys 11 units of that good .when price rises to Rs 15 per unit, the consumer continues to buy 11 units. Calculate price elasticity of demand.
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-1
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0
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-2
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-3
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Explanation:
Detailed explanation-1: -Theory Of Consumer Behaviour When price of a good is 13 per unit, the consumer buys 11 units of that good. When price rises to 15 per unit, the consumer continues to buy 11 units. Calculate price elasticity of demand.
Detailed explanation-2: -Answer. Price elasticity of demand =1.25.
Detailed explanation-3: -Theory Of Consumer Behaviour When the price of a commodity falls by 2 per unit, its quantity demanded increases by 10 units. Its price elasticity of demand is (-)l.
Detailed explanation-4: -When price is 10 per unit, demand for a commodity is 100 units. As the price fallsto 8 per unit, demand expands to 150 units.
There is 1 question to complete.