HARD
12th CBSE
IMPORTANT
Earn 100

Suppose the price elasticity of demand for a good is -0.2. If there is a 5⁒ increase in the price of the good, by what percentage will the demand for the good go down?

Important Questions on Theory of Consumer Behaviour

HARD
12th CBSE
IMPORTANT
Introductory Microeconomics>Chapter 2 - Theory of Consumer Behaviour>Q 29
Suppose the price elasticity of demand for a good is -0.2% . How will the expenditure on the good be affected if there is a 10% increase in the price of the good?
HARD
12th CBSE
IMPORTANT
Introductory Microeconomics>Chapter 2 - Theory of Consumer Behaviour>Q 30
Suppose there was a 4% decrease in the price of a good, and as a result, the expenditure on the good increased by 2%. What can you say about the elasticity of demand?