Suppose a shop has a sale on its silverware. If the price of a silver earrings is reduced from ₹ 300 to ₹ 200 and the quantity demanded increases from 3,000 earrings to 5,000 earrings, what is the price elasticity of demand for silverware?
A. 0.8
B. 1.0
C. 1.25
D. 1.50
Answer:C
Suppose a shop has a sale on its silverware. If the price of a silver earrings is reduced from ₹ 300 to ₹ 200 and the quantity demanded increases from 3,000 earrings to 5,000 earrings, what is the price elasticity of demand for silverware?
A. 0.8 B. 1.0 C. 1.25 D. 1.50