i want to know whether the answer for the price elasticty of demand question is correct or not. please tell me how
in econoville, there is one grocery shop. it used to sell fresh milk at rs.20 per litre , at which price 400 litres of milk were sold per month . after some time , the price were raised to rs. 30per litre.
only 200 lts of milk is sold
the price elasticty of demand when fresh milk price increases from rs.20 to rs.30 is equal to a)2.5 b)1.0 c)1.66 d)2.66
correct answer is 1.66