Let QX = 1500/Px, the elasticity of demand of the good X when its price falls from $ 8 to $ 2 per unit, will be-

CA Foundation · Business Economics · MTP · January 2025
Let QX = 1500/Px, the elasticity of demand of the good X when its price falls from $ 8 to $ 2 per unit, will be-
(A) A. greater than one
(B) B. less than one
(C) C. equal to one
(D) D. can't say

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. equal to one

Topics: Public Finance

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