If price of an article decreases from Rs P1 to Rs 190 when quantity demanded increases from 5000 uni...........

General Studies (CHSL) Indian Economy

If price of an article decreases from Rs P1 to Rs 190, when quantity demanded increases from 5000 units to 5200 units, and if point elasticity of demand is

-0.8 ?nd P1?

Rs. 220

Rs. 240

Rs. 200

Rs. 250

छोटे Courses बड़े Results

Master Indian Economy

Prepare through Micro-courses

Try Now

Explanation:

The price elasticity of demand is calculated as the percentage change in quantity demanded (110 - 100 / 100 = 10%) divided by a percentage change in price ($2 - $1.50 / $2). The price elasticity of demand, in this case, is 0.4. Since the result is less than 1, it is inelastic.

Report error

Submit Error