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Standard VIII

Mathematics

Rate Compounded Anually or Half-Yearly

If the local ...

Question

If the local pizzeria raises the price of a medium pizza from Rs. $60$ to Rs. $100$ and quantity demanded falls from $700$ pizzas a night to $100$ pizzas a night, the price elasticity of demand for pizzas is?

.67

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1.5

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2.0

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3.0

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Solution

The correct option is D $3.0$
We know arc elasticity method as
$= \frac{Q - Q 1}{Q + Q 1} * \frac{P + P 1}{P - P 1}$
$= \frac{700 - 100}{700 + 100} * \frac{60 + 100}{60 - 100}$
$= 3.0$ .
*minus is ignored

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If the local pizzeria raises the price of a medium pizza from Rs. 60 to Rs. 100 and quantity demanded falls from 700 pizzas a night to 100 pizzas a night, the price elasticity of demand for pizzas is?

The correct option is D 3.0We know arc elasticity method as=Q−Q1Q+Q1∗P+P1P−P1=700−100700+100∗60+10060−100=3.0. *minus is ignored

If the local pizzeria raises the price of a medium pizza from Rs. $60$ to Rs. $100$ and quantity demanded falls from $700$ pizzas a night to $100$ pizzas a night, the price elasticity of demand for pizzas is?

The correct option is D $3.0$
We know arc elasticity method as
$= \frac{Q - Q 1}{Q + Q 1} * \frac{P + P 1}{P - P 1}$
$= \frac{700 - 100}{700 + 100} * \frac{60 + 100}{60 - 100}$
$= 3.0$ .
*minus is ignored