1.

A consumer spends Rs. 1000 on a good priced at Rs. 10 per unit. When its price falls by 20 per cent, the consumer spends Rs. 800 on the good. Calculate the price elasticity of demand by the percentage method.

Answer»

A consumer spends Rs. 1000 on a good priced at Rs. 10 per unit. When its price falls by 20 per cent, the consumer spends Rs. 800 on the good. Calculate the price elasticity of demand by the percentage method.



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