Kumar used to eat 30 samosas in a month when the bull price of each 39 samosa was Rs 12 Wh...........

Quantitative Aptitude( Paper-I ) Percentage

Kumar used to eat 30 samosas in a month when the• price of each' samosa was Rs.12. When the price of samosa increased to Rs. 15 per piece, he eats only 20 samosas a month. What is the price elasticity of demand for samosa by Kumar?

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CAPF 2020 Paper-1

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1.33

1.00

0.75

0.08

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Explanation:

1.33

given:
Earlier price = Rs. 12
New Price = Rs. 15
Earlier demand = 30
New demand = 20
Formula used:Price elasticity of demand = Percentage change in quantity demand/Percentage change in price
Calculation:Percentage change in quality demand = [(20 – 30)/30] × 100
⇒ [-10/30] × 100
⇒ -100/3%
Percentage change in price = [(15 – 12)/12] × 100
⇒ [3/12] × 100⇒ 25%Price elasticity of demand = (-100/3) ÷ 25⇒ -4/3%⇒ -1.33%
∴ The price elasticity of demand for samosa by Kumar is 1.33%