Price Elasticity of Demand of a good is (-) 3. It shows that:

CA Foundation · Business Economics · MTP · September 2024
Price Elasticity of Demand of a good is (-) 3. It shows that:
(A) A. When price falls by 1%, demand rises by 3%
(B) B. When price rises by 1%, demand falls by 3%
(C) C. Either (a) or (b)
(D) D. Neither (a) nor (b)

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Either (a) or (b)

Topics: Theory of Demand and Supply

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