Question

if a 12% fall in price of burgers leads to a 3% increases in quantity demand of burgers then price elasticity would be ​

Answer 1

Price elasticity would be 0.25.

Explanation:

1. Price elasticity is calculated by the formula -

Percentage change in quantity demanded / percentage change in price

2. Percentage change in quantity demanded is given in question as 3%

3. Percentage change in price is given in question as 12%

4. Hence, price elasticity is 3%/12%

5. Thus, answer is 0.25.