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# Can you explain the answer of this question below:... moreThe Price of a tiffin box is Rs. 100 per unit andthe quantity demanded in a market is 1,25,000units . Company increased the price to Rs.125per unit due to this increase in price quantitydemanded decreases to 1,00,000 units. whatwill be price elasticity of demand ______A:1.25B:1.00C:0.80D:None of the above.The answer is c. Related Test: Test: Theory Of Demand- 2

## CA Foundation Question

 Samiksha Jun 11, 2018
Well lets solve this step by step..... Given:- Q=125000 units, Q1=100000 units, change in quantity= - 25000 units, now %change in quantity demand = change in quantity /Q * 100= - 20% .. Now P=Rs 100, P1=Rs 125, change in price=Rs 25, %change in price = change in price/P * 100= 25%... nw price elasticity of demand = %change in quantity demanded /%change in price =-20%/25%=(-)0.8... i think 0.8 will be the answer plz check it once more...

 Naveen Garg Jun 15, 2018
Ans is one As {(125000 - 100000)/(125000+100000)} X {(125+100)/(125-100)} Solve this u get ur ans...

 Girish Agarwal Jun 16, 2018

 Anand Dharwad Dec 23, 2018
B. 0.80

 Goplar Ajay Dec 21, 2018

 Kirti Khandelwal May 12, 2019
0.8 ans.

 Swati Tevathiya May 18, 2019
0.80 right ans

 Aditya 12com208 Aug 13, 2021
The best way to this sum is how many percentage had came in two variables i.e price and demand
new demand = 125000 - 20% of 125000
new price = 100 + 25%of 100
e= demand:price i.e 20:25 = 0.8