Question
The price decreases from INR 2,000 to INR 1,800. Quantity demanded per year increases from 5000 to 6000 units. Which of the following is correct?
Answer: Option A
:
A
A.The percentage change in demand is +20%; the percentage change in price is -10% so the price elasticity of demand is -2.
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:
A
A.The percentage change in demand is +20%; the percentage change in price is -10% so the price elasticity of demand is -2.
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