6. Price of a commodity falls from Rs. 20 top Rs. 15 per unit. Its demand rises from 600 units to 750 units. Calculate its price elasticity of demand.
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Both stock and market price of a product affect its supply to a greater extent. If the market price is more than the cost price, the seller would increase the supply of a product in the market. However, the decrease in market price as compared to cost price would reduce the supply of product in the market.
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