economics query

651 views 2 replies

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

 

 

Replies (2)

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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