When the price of cylinder rises form Rs. 120 to Rs. 200, the demand falls from 300 to 200. Calculate price elasticity of demand.
- a)1
- b)0.5
- c)5
- d)None
Correct answer is 'B'. Can you explain this answer?
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Answers
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Vishnupriya Vasudevan
May 27, 2018 |
Using the formula ∆q/∆p×p/q ∆q=300-200,q= 200 ∆p=200-120,p =120 100/80×120/300 =0.5
Using the formula ∆q/∆p×p/q ∆q=300-200,q= 200 ∆p=200-120,p =120 100/80×120/300 =0.5
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Using the formula ∆q/∆p×p/q ∆q=300-200,q= 200 ∆p=200-120,p =120 100/80×120/300 =0.5
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