Question

suppose a department store has a sale on his silverware. if the price of plate setting is reduced from ₹ 300 to ₹ 200 and the quantity demanded increase from 3000 plate setting to 5000 plate setting, what is the price elasticity of demand for silver ware
please write right answer ​

Answer 1

Answer:

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Step-by-step explanation:

We know are elasticity method as

=Q+Q1Q−Q1∗P−P1P+P1

=3000+50003000−5000∗300−200300+200

=1.25.

So, Arc elasticity = 1.25

Differences were large hence arc elasticity is used.