If due to a change in the price of a commodity from Tk. 250 to Tk. 200 per unit, its quantity demanded increases by 20% per year for a family, then what is the price elasticity of demand for the good? Please comment on the type of its price elasticity.

If due to a change in the price of a commodity from Tk. 250 to Tk. 200 per unit, its quantity demanded increases by 20% per year for a family, then what is the price elasticity of demand for the good? Please comment on the type of its price elasticity.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 16SQ

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Question

If due to a change in the price of a commodity from
Tk. 250 to Tk. 200 per unit, its quantity demanded
increases by 20% per year for a family, then what is
the price elasticity of demand for the good? Please
comment on the type of its price elasticity.

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