A 10% increase in the price of video games results in a 5% decrease in quantity demanded. The price elasticity of demand is ___, demand is ___, and total revenue will ___.
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CUET-PG 2018 Question 62: Demand theory and elasticity
Answer and worked solution
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Demand theory and elasticity has come up 161 times in 7 exams since 2004.
What this question tests
This question is on Price elasticity of demand, part of Demand theory and elasticity in Microeconomics.
How responsive quantity is to price, at a point, along a linear curve, and for constant-elasticity demand.
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Question from the CUET-PG 2018 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.