alleryStart learning →Price rises from Rs 50 to Rs 60 and supply from 200 to 220 units. What is PES (simple percentage change)?
A0.5
B0.2
C2.0
D1.0
Answer & Solution
Correct answer: A. 0.5
Price rises 20% and quantity 10%, so PES = 10 / 20 = 0.5, which is inelastic.
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