Given that the elasticity of demand for a commodity is 2.5, the percentage change in the quantity demanded as a result of a 10 percent change in it price is?
a
0.25
b
0.40
c
4.00
d
25.00
Explanation
Correct Option
dNo explanation available
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Emmy54356
3 years ago
price elasticity= % ∆ quantity demanded/%∆ in price
so %∆ in quantity
------------------------- = 2.5
10
% ∆ in quantity = 2.5*10 = 25
