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The demand for a good falls to 240 units...

The demand for a good falls to 240 units is respone to rise in price by ₹ 2. if the original demand was 300 units at the price of ₹ 20, calculate price elasticity of demand.

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The correct Answer is:
`E_(d)=(-)2` (Demand is Highly elastic as `E_(d) gt 1)`
Negatice sign of `E_(d)` indicates the inverse relationship between price and quantity demanded.
price Elasticity of demand `(E_(d))=(DeltaQ)/(DeltaP)xx P/Qxx-60/(2)xx20/300=(-)2`
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SANDEEP GARG-ELASTICITY OF DEMAND-Unsolved practicals
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