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CA Foundation Law of Demand — practice questions — page 3

Explore 61 free Law of Demand questions in CA Foundation Business Economics. Open each question or exercise to read its content, reference answers and available explanation.

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Law of Demand questions and exercises with answers

Showing questions 61–61 of 61.

A shop sells 200 units at Rs 50 each. Price rises to Rs 60 and sales fall to 160. What is the demand elasticity magnitude?Read the answer and worked solution →

Worked practice questions

A shop sells 200 units at Rs 50 each. Price rises to Rs 60 and sales fall to 160. What is the demand elasticity magnitude?

  1. Exactly 0.5
  2. Exactly 1
  3. Exactly 2
  4. Exactly 4
Show answer and solution

Correct answer: B. Exactly 1

Price rose 20% and quantity fell 20%, so elasticity has magnitude 1, which is unitary.

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More Business Economics topics

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