Question

the elasticity of demand for a good it is given as (- 2) by how much percentage its demand will fall when price of goods rises by 20%​

Answer 1

Answer:

Ed = %change in Demand÷ %change in Price

(-2) = %change in Demand÷ 20

-2×20 = %change in Demand

-40% = %change in Demand

Note: (-) Sign Signifies the Inverse relationship between Price and Quantity Demanded.