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Management · Q501

Managerial Economics

Graduate and Post Graduate · Management · question 501

Q501

The price of a commodity is Rs. 20 and the quantity demanded at this price is 200 units. If the price falls to Rs. 16 and the quantity demanded increases to 280 units, calculate the price (arc) elasticity

A.
1.6
B.
1.5
Answer
C.
1.9
D.
1.3

Answer: Option B

Solution

Answer: Option B
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