Question

. If the quantity of blankets demanded increases from 4600 to 5700 in response to a decrease in their price from Rs. 220 to Rs. 190, the price elasticity of demand for blankets is (a) 0.69 (b) 1.0 (c) 1.46 (d) 2.66

Answer 1

%∆Qd/%∆P

4600-5700/((4600+5700)/2) ÷

220-190/((220+190)/2)

C) 1.46

Answer 2

Answer:

Explanation:

percentage change in demand divided by percentage change in price

4600- 5700=1100÷4600×100=23.9130

220-190÷220×100=13.6363 then

23.9130÷13.6363=1.7536