i want to know whether the answer for the price elasticty of demand question is correct or not. please tell me how
suppose a deptmnt stoe has a sale on its silverware. if the price of a plate setting is reduced from rs 300 to rs 200 and the quantity demamded increases from 3000 plate settings to 5000 plate settings, what isprice elasticity of demand
a)0.8
b)1.0
c)1.25
d)1.50
correct answer is c
200-300 3000+5000
200+300 3000-5000
=100 8000
500 2000
=1 4
5 1
=0.8answer
| Originally posted by :nikhil | ||
| " | 200-300 3000+5000 200+300 3000-5000 =100 8000 500 2000 =1 4 5 1 =0.8answer |
" |
nikhil is right..
it may be possible that module is having wrong answer
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