Question

One per cent change in income causes $10$ per cent increase in quantity demanded. Elasticity of demand is ___________.

• A. $1$
• B. $10$
• C. $5$
• D. $2$

Answer 1

The correct option is B $10$

$Ed=\frac{percentage△indemand}{percentage△inincome}=\frac{10}{1}=10$.