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Question
The price of a commodity goes up from ₹ 26 to ₹ 30 as a result of which demand falls from 4 units to 2 units, the price elasticity of demand is ______.
Options
2.25
3.25
3.50
3.75
Solution
The price of a commodity goes up from ₹ 26 to ₹ 30 as a result of which demand falls from 4 units to 2 units, the price elasticity of demand is 3.25.
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RELATED QUESTIONS
The price elasticity of demand on a linear demand curve at the X-axis is ______.
Complete the correlation:
Ratio method : Ed = `(%triangle"Q")/(%triangle"P")` :: _______ : Ed = `"Lower segment"/"Upper segment"`
Complete the correlation:
Ratio method: Ed = `(%\Delta"Q")/(%\Delta"P")`:: ______ : Ed = `("Lower segment")/("Upper segment")`
Ratio method : Ed = `(%ΔQ)/(%ΔP)` :: ______ : Ed = `("Lower segment")/("Upper segment")`
Complete the correlation:
Ratio method : Ed = `(%triangle"Q")/(%triangle"P")` :: _______ : Ed = `"Lower segment"/"Upper segment"`
Assertion (A): Suppose that a 2 per cent drop in the price of chocolate causes a 2 per cent increase in quantity demanded. This case is termed unit elasticity.
Reason (R): In this example, Ed is exactly 1 (or unity). Ed = `2/2=1`
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−0.87, −0.53, −31 , −0.80
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