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Commerce · Q849

Economics

Graduate and Post Graduate · Commerce · question 849

Q849

A business, currently selling 10,000 units of its product per month, plans to reduce the retail price from Rs. 1 to Rs. 0.90. It knows from previous experience that the price elasticity of demand for this product is (-) 1.5. Assuming no other changes, the sales the business can now expect each month will be:

A.
8,500
B.
10,500
C.
11,000
D.
11,500
Answer

Answer: Option D

Solution

Answer: Option D
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