Price elasticity of demand of two goods A and B is (-) 3 and (-) 4 res – InterviewSolution

1.	Price elasticity of demand of two goods A and B is (-) 3 and (-) 4 respectively. Which of the two goods has higher elasticity and why?
Answer» Good B has higher elasticity as compared to A. It is because with change in price by one per cent, percentage change in demand for B is 4% while in case of A it is only 3 per cent.

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