Question

what will be the elasticity of demand, if there is a decline in price of a good by 10% and increase in demand by 30%?

Answer 1

$\Huge\mathcal\red{Answer !}$

• Elastic demand occurs when changes in price cause a disproportionately large change in quantity demanded. For example, a good with elastic demand might see its price increase by 10%, but demand drop by 30% as a result. .
• The PED of the good is 4.2, which is considered to be elastic.