Question 12
MediumOriginal questionAt a price of ₹40, 500 units are demanded. When the price falls to ₹36, demand rises to 600 units. What is eₚ?
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
% change in quantity = 100 ÷ 500 = 20%. % change in price = 4 ÷ 40 = 10%.
eₚ = 20 ÷ 10 = 2.
- Concept
- Elasticity with larger numbers
- Typical timeTypical
- 70 s
- Your timeYours
- —
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