2. Solved Papers
  3. SSC

SSC SSC CHSL TIER-I Solved Paper Held on 07.01.2017

  • question_answer
    If price of an article decrease from P1 to Rs. 25, quantity demanded increases from 900 unit to 1200 units. If point elasticity of demand is 2 find P1?

    A)  Rs. 20

    B)  Rs. 30

    C)  Rs. 35

    D)  Rs. 15   

    Correct Answer: B

    Solution :

     Point Elasticity of Demand (PED) = % change in quantity /% change in price If Q 1 and Q2 are the initial and final quantities and P1 and P2 are the initial and final prices, \[PED=\frac{\frac{(Q2-Q1)}{Q1}\times 100}{\frac{(P2-P1)}{P1}\times 100}\] As per the question, \[Q2=1200;\text{ }P1=?,\]\[\text{ }P2=25;\]\[PED=-2\] Using these values, we get P1= Rs. 30


You need to login to perform this action.
You will be redirected in 3 sec spinner