2. Solved Papers
  3. SSC

SSC SSC CHSL TIER-I Solved Paper Held on 09.01.2017

  • question_answer
    A manufacturer faces price elasticity of demand of a-2 for its product. If it lowers its price by 5%, the increase in quantity sold will be

    A)  3%

    B)  10%

    C)  2.50%

    D)  7%

    Correct Answer: B

    Solution :

     Price elasticity of demand is a measure of the relationship between a change in the quantity demanded of a particular good and a change in its price. The formula for calculating price elasticity of demand is:
    Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price
    So % Change in Quantity Demanded = Price Elasticity of Demand \[\times \text{ }%\]Change in Price
    According to the question, the Change in Quantity Demanded\[=-2x-5=10%\]


You need to login to perform this action.
You will be redirected in 3 sec spinner