alleryStart learning →Price elasticity of demand is the ratio of which two quantities?
APrice change over income change
BRevenue divided by total cost
C% change in Q over % change in P
DSupply divided by demand
Answer & Solution
Correct answer: C. % change in Q over % change in P
It is the percentage change in quantity demanded divided by the percentage change in price.
Keep practising Law of Demand
Browse all Law of Demand questions for CA Foundation, or explore more Business Economics topics.
Related questions
A shop sells 200 units at Rs 50 each. Price rises to Rs 60 and sales fall to 160. What is A perfectly inelastic demand curve for a good is typical when the good has what?Keynesian economics is sometimes called what?The party with fewer opportunities to avoid a tax usually bears what share of its burden?When demand is perfectly inelastic, who bears the burden of a per-unit tax?The price of tea rises 10% and coffee demand rises 5%. What is the cross elasticity of cofWhich elasticity measures the effectiveness of a campaign in generating new sales?Cross elasticity of demand relates the quantity demanded of good A to the change in what?