Question

If the price of a commodity increases by 10 percent and as a result, its quantity demanded decreases by 30 percent, what will be the value of Price elasticity of demand 30
300
1/3
3
which of the following is correct​

Answer 1

Answer:

1/3

Explanation:

because its price is increase or decrease

Answer 2

Given - Price of commodity - 10% increase.

Quantity demand - 30% decrease.

Find - Value of price elasticity of demand.

Solution - Price elasticity of demand is calculated as by dividing the percentage change in quality demand by percentage change in price.

Hence, keeping the values in formula -

Price elasticity of demand - 30/10

Price elasticity of demand - 3

Hence, value of price elasticity of demand is 3.