7 Views

Question : Assertion: Price elasticity of demand measures the percentage change in quantity demanded given a one percent change in price.

Reason: Price elasticity of demand is calculated by dividing the percentage change in quantity demanded by the percentage change in price.

Option 1: Both the assertion and reason are correct and related.

Option 2: Both the assertion and reason are correct but not related.

Option 3: The assertion is correct, but the reason is incorrect.

Option 4: The assertion is incorrect, but the reason is correct.


Team Careers360 24th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Both the assertion and reason are correct and related.


Solution : The correct answer is (A) Both the assertion and reason are correct and related.

The assertion states that price elasticity of demand measures the percentage change in quantity demanded given a one percent change in price. This is a correct statement. Price elasticity of demand measures the responsiveness of quantity demanded to changes in price, and it is often expressed as a percentage change.

The reason states that price elasticity of demand is calculated by dividing the percentage change in quantity demanded by the percentage change in price. This is also correct. Price elasticity of demand is calculated using the formula:

Price elasticity of demand = (Percentage change in quantity demanded) / (Percentage change in price)

Therefore, both the assertion and reason are correct and related. I apologize for the confusion caused by my initial response.

Related Questions

Amity University, Noida Law A...
Apply
700+ Campus placements at top national and global law firms, corporates, and judiciaries
UPES Integrated LLB Admission...
Apply
Ranked #28 amongst Institutions in India by NIRF | Ranked #1 in India for Academic Reputation by QS University Rankings | 16.6 LPA Highest CTC
Great Lakes PGPM & PGDM 2025
Apply
Admissions Open | Globally Recognized by AACSB (US) & AMBA (UK) | 17.3 LPA Avg. CTC for PGPM 2024 | Extended Application Deadline: 10th Jan 2024
Amity University Noida B.Tech...
Apply
Among Top 30 National Universities for Engineering (NIRF 2024)
ISBR Business School PGDM Adm...
Apply
250+ Companies | Highest CTC 16 LPA | Average CTC 8 LPA | Ranked as Platinum Institute by AICTE for 6 years in a row | Awarded Best Business School...
Chandigarh University Admissi...
Apply
Ranked #1 Among all Private Indian Universities in QS Asia Rankings 2025 | Scholarships worth 210 CR
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books