The price elasticity of demand is 5-0 if a 10-1 mark-

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Standard XI

Economics

Calculating Profits

The price ela...

Question

The price elasticity of demand is 5.0 if a 10% increase in the price results in a ________ decrease in the quantity demanded.

[1 mark]

10%

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50%

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Solution

The correct option is B 50%
Ed = Percentage change in quantity demanded/Percentage change in price
5 = Percentage change in quantity demanded/10
Percentage change in quantity demanded = 50%

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The price elasticity of demand is 5.0 if a 10% increase in the price results in a ________ decrease in the quantity demanded. [1 mark]

The correct option is B 50%Ed = Percentage change in quantity demanded/Percentage change in price 5 = Percentage change in quantity demanded/10 Percentage change in quantity demanded = 50%

The price elasticity of demand is 5.0 if a 10% increase in the price results in a ________ decrease in the quantity demanded.

[1 mark]

The correct option is B 50%
Ed = Percentage change in quantity demanded/Percentage change in price
5 = Percentage change in quantity demanded/10
Percentage change in quantity demanded = 50%