Question

The price elasticity of demand for hamburger is _________.

• A. the change in the quantity demanded of hamburger when hamburger increases by 30 paise per rupee
• B. the percentage increase in the quantity demanded of hamburger when the price of hamburger falls by 1 per cent per rupee
• C. the increase in the demand for hamburger when the price of hamburger falls by 10 per cent per rupee
• D. the decrease in the quantity demanded of hamburger when the price of hamburger falls by 1 per cent per rupee

Answer 1

The correct option is B the percentage increase in the quantity demanded of hamburger when the price of hamburger falls by 1 per cent per rupee

The price elasticity of demand for hamburger is the percentage increase in the quantity demanded of hamburger when the price of hamburger falls by 1 percent per rupee.

Hence, the correct option is B.