Question:
When the price of a good falls from Rs 30 to Rs 25, the consumer continues to purchase the same quantity of the good. What will be the price elasticity of demand for this good?
When the price of a good falls from Rs 30 to Rs 25, the consumer continues to purchase the same quantity of the good. What will be the price elasticity of demand for this good?
Updated On: Nov 4, 2024
- Unitary elastic
- Perfectly elastic
- Perfectly inelastic
- Elastic
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The Correct Option is C
Solution and Explanation
Price elasticity of demand measures how much the quantity demanded changes in response to a price change. If the quantity demanded remains constant despite a change in price, the demand is perfectly inelastic.
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