If the demand function of a commodity X is X=200-0.5P, what will be demand elasticity at a price of ₹ 5 ?
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JNU SSS 2020 Question 24: 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 JNU SSS 2020 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.