A discount store has a special offer on CDs. It reduces their price from ₹ 150 to ₹ 100. Suppose the store manager observes that the quantity demanded increases from 700 CDs to 1,300 CDs. What is the price elasticity of demand for CDs?
A. 0.8
B. 1.0
C. 1.25
D. 1.50
Answer:D
A discount store has a special offer on CDs. It reduces their price from ₹ 150 to ₹ 100. Suppose the store manager observes that the quantity demanded increases from 700 CDs to 1,300 CDs. What is the price elasticity of demand for CDs?
A. 0.8 B. 1.0 C. 1.25 D. 1.50