Question

suppose the price elasticity of demand of for a good is minus 0.2 . How will quantities on the good be affected if there is a 10% increase in its price​

Answer 1

Answer:

siple 10% 0f 0.2 is 0.1 lights or delight like purchaser

Answer 2

$\huge\mathcal\pink{\dag ANSWER \dag}$

Elasticity of demand = -0.2

Percentage change in price = 5 %−0.2

⇒ Percentage change in quantity demanded =−0.2× 5%=(−)1 per cent

∴ Demand for the good goes down by 1 per cent.