Question
Economics Question on The elasticity of demand and its measurement
Suppose the price elasticity of demand for a good is (-)1. At a price of ₹4 per unit, demand for the good is 40 units. Suppose the price of the good increases to ₹6 per unit, and as a result, the demand for the good will be_____
A
10 units
B
20 units
C
30 units
D
40 units
Answer
20 units
Explanation
Solution
The correct option is (B) :20 units