Answered: If price of an article decreases from…

If price of an article decreases from P1 to Rs 25, quantity demanded increases from 900 units to 1200 units. If point elasticity of demand is 2 find P1? A) Rs. 20 B) Rs. 30 C) Rs. 25 D) Rs. 35

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 1QR

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Question

If price of an article decreases from P1 to Rs 25, quantity demanded increases from 900 units to 1200 units. If point elasticity of demand is 2 find P1?

A) Rs. 20

B) Rs. 30

C) Rs. 25

D) Rs. 35

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