If the price elasticity of demand of a product is (-) 3, what should be the price of the product for its MR to be ₹20?

CA Foundation · Business Economics · MTP · April 2025
If the price elasticity of demand of a product is (-) 3, what should be the price of the product for its MR to be ₹20?
(A) A. ₹10/unit
(B) B. ₹20/unit
(C) C. ₹30/unit
(D) D. ₹40/unit

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. ₹30/unit

Topics: Theory of Demand and Supply

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