A consumer buys 100 units of a goods at a price of ₹ 6 per unit. Suppose price elasticity of demand is -3. At what price will he buy 80 units?

CA Foundation · Business Economics · PYQS · May 2025
A consumer buys 100 units of a goods at a price of ₹ 6 per unit. Suppose price elasticity of demand is -3. At what price will he buy 80 units?
(A) A. ₹ 5.8
(B) B. ₹ 6.2
(C) C. ₹ 6.4
(D) D. ₹ 6.75

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. ₹ 6.4

Topics: Theory of Demand and Supply

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