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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 ?

  1. A
    2400 units
  2. B
    2000 units
  3. C
    1800 units
  4. D
    1500 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:





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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 ?
A
2400 units
B
2000 units
C
1800 units
D
1500 units

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