The price of a commodity rises from rs. 10 to rs. 12 per unit. As a result its demand fall from 120 units to 100 units. Find out price elasticity of demand.
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Answer:
In-elastic
Explanation:
As far as I know
Ep = Change in percentage of commodity /Change in percentage of price.
Change in Commodity = 16.77%
Change in price = 20%
16.77 / 20 = 0.8385.
As the result less than 1. It's inelastic.
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