Question

Consumer demand function for good X is given by the equation P=100-
Q. What is the price elasticity of demand if the price of the good is
Rs.60?

Answer 1

Explanation:

Price elasticity of demand refers to how changes to price affect the quantity demanded of a good.

It measures the responsiveness of demand after a change in a product's own price. In short, how people react to a change in the price of any product/service.

Whether they increase/decrease of their demand for it and in what percentage.