1.

a. Arrange the following coefficients of price elasticity of demand in ascending order: -0.7, -0.3, -1.1, -0.8 b. Comment upon the degree of elasticity of demand for Good X, using the total outlay method, if the price of X falls from Rs18 per unit to Rs13 per unit and its quantity demanded rises from 50 units to 100 units.

Answer»

a. Arrange the following coefficients of price elasticity of demand in ascending order:

-0.7, -0.3, -1.1, -0.8

b. Comment upon the degree of elasticity of demand for Good X, using the total outlay method, if the price of X falls from Rs18 per unit to Rs13 per unit and its quantity demanded rises from 50 units to 100 units.



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