Question

(c) is an item of necessity
5. If the price of burger rises for 12 per piece to * 20 per piece as a result of which the do
decrease from 300 to 200 pieces per day. The price elasticity of demand can be estimate
(a) 0.5
(b) 0.8
(c) 0.25
(d) 2.10
can anyone please solve this​

Answer 1

Answer:

a)0.5

Explanation:

because the formula is

change in quantity demanded÷ change in price

× original price÷original quantity

i.e 100÷8=12.5×

12÷300=0.04

i.e 12.5×0.04=0.5