Question 17
HardOriginal questionAt a price of ₹4, 120 units are demanded. When the price rises, the quantity falls to 90 units. If eₚ = 1, what is the new price?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
% change in quantity = (90 − 120) ÷ 120 = −25%.
With eₚ = 1, price must have risen by 25%: 4 × 1.25 = ₹5.
- Concept
- New price from elasticity
- Typical timeTypical
- 100 s
- Your timeYours
- —
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