Question 15
HardOriginal questionA good sells 100 units at ₹10. Its price elasticity of demand is 1.5. If the price falls to ₹8, how many units will be demanded?
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
% change in price = (8 − 10) ÷ 10 = −20%.
% change in quantity = 1.5 × 20% = 30%, a rise.
New quantity = 100 × 1.30 = 130 units.
- Concept
- New quantity from elasticity
- Typical timeTypical
- 100 s
- Your timeYours
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