Question : The price of a product decreases from INR 100 to INR 80 per unit, resulting in an increase in quantity demanded from 50 units to 70 units. Calculate the percentage change in price.
Option 1: -20%
Option 2: -25%
Option 3: -33.33%
Option 4: -50%
Correct Answer: -20%
Solution : The correct answer is (a) -20%
Initial Price = ₹100 per unit
New Price = ₹80 per unit
Using the formula, we can calculate the percentage change in price:
Percentage Change in Price = [(New Price - Initial Price) / Initial Price] * 100
= [(₹80 - ₹100) / ₹100] * 100
= [(-₹20) / ₹100] * 100
= -20%
The percentage change in price is -20%
Question : If the price of a product increases from INR 50 to INR 60 per unit, and the quantity demanded decreases from 80 units to 70 units, calculate the percentage change in quantity demanded.
Question : The price of a product increases from INR 80 to INR 100 per unit, resulting in a decrease in quantity demanded from 60 units to 40 units. Calculate the percentage change in total expenditure.
Question : If the price of a product increases from INR 50 to INR 60 per unit, and the quantity demanded decreases from 100 units to 80 units, calculate the price elasticity of demand.
Question : A product has an initial quantity demanded of 80 units at a price of INR 6 per unit. Due to a price change, the new price is INR 8 per unit, and the new quantity demanded is 60 units. Calculate the percentage change in quantity demanded.
Question : The quantity demanded of a good decreases from 200 units to 160 units when the price increases from INR 20 to INR 25 per unit. Calculate the price elasticity of demand.
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