Can you explain the answer of this question below:
The 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:1.25
B:1.00
C:0.80
D:None of the above.
The answer is c.

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...

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

This discussion on 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. is done on EduRev Study Group by CA Foundation Students. The Questions and Answers of 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. are solved by group of students and teacher of CA Foundation, which is also the largest student community of CA Foundation. If the answer is not available please wait for a while and a community member will probably answer this soon. You can study other questions, MCQs, videos and tests for CA Foundation on EduRev and even discuss your questions like 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. over here on EduRev! Apart from being the largest CA Foundation community, EduRev has the largest solved Question bank for CA Foundation.

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This discussion on 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. is done on EduRev Study Group by CA Foundation Students. The Questions and Answers of 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. are solved by group of students and teacher of CA Foundation, which is also the largest student community of CA Foundation. If the answer is not available please wait for a while and a community member will probably answer this soon. You can study other questions, MCQs, videos and tests for CA Foundation on EduRev and even discuss your questions like 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. over here on EduRev! Apart from being the largest CA Foundation community, EduRev has the largest solved Question bank for CA Foundation.