when the price of a good is rupees 13 per unit consumer buys 11 units. The price rise to 15 per unit consumer continues to buy 11 units. Calculate Price Elasticity of Demand. Tell the type of elasticity of demand
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The price elasticity of demand is calculated as the percentage change in quantity demanded (110 - 100 / 100 = 10%) divided by a percentage change in price ($2 - $1.50 / $2). The price elasticity of demand, in this case, is 0.4. Since the result is less than 1, it is inelastic.
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