A) 3%
B) 10%
C) 2.50%
D) 7%
Correct Answer: B
Solution :
Price elasticity of demand is a measure of the relationship between a change in the quantity demanded of a particular good and a change in its price. The formula for calculating price elasticity of demand is:Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price |
So % Change in Quantity Demanded = Price Elasticity of Demand \[\times \text{ }%\]Change in Price |
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