If price of an article decreases from Rs 800 to Rs 750, when quantity demanded increases from units to 2250 units, and if point elasticity of demand is find ?
- A2400 units
- B2000 units
- C1800 units
- D1500 units
Solution & Step-by-step Explanation
Given parameters:Initial Price () = New Price () = Change in price () = Initial Quantity = New Quantity () = Change in quantity () = Elasticity of demand () = Using the point elasticity formula:
Substituting the values:
Substituting the values: