If price elasticity of demand is -4 then it means demand falls by 4% due to:- (1) 1% rise in price (2) 4% rise in price (3) 1% fall in price (4) 4% fall in price.
If price elasticity of demand is -4 then it means demand falls by 4% due to:- (1) 1% rise in price (2) 4% rise in price (3) 1% fall in price (4) 4% fall in price.
Chapter20: Elasticity: Demand And Supply
Section: Chapter Questions
Problem 11E: The price elasticity of the demand for gasoline is -0.02. The price elasticity of demand for...
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If
(1) 1% rise in price
(2) 4% rise in price
(3) 1% fall in price
(4) 4% fall in price.
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