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. 30You need to login to perform this action.
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