Math, asked by Dasrupsa8240, 1 year ago

If a 12% fall in price of burger leads to a 3% increase in the quantity demanded of burgers then the price elasticity would be

Answers

Answered by Golda
3
Solution :-

% change in Demand = 3 %

% change in Price = - 12 %

Price Elasticity of Demand (ED)

= % Change in Quantity Demanded/% Change in Price 

⇒ 3 %/- 12 %

= 1/4 

= 0.25

Price Elasticity of Demand is 0.25, which is inelastic.

It will not be shown with a negative sign. Here is the clarification for this.

It is important to note that when the price of burger decreases by 1 %, the quantity demanded will be changed by 0.25 %. It means the change in the price will result in a smaller percentage change in the quantity of burger. So, it is not shown with a negative sign.
Answered by shubhart80
1

Answer:

It will be - 0.25

Step-by-step explanation:

3%/12%

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