The price of a product is 100 per unit. If price falls by 20% the quantity increases by 120 units. The price elasticity of demand is -1. The new…
CA Foundation · Business Economics · PYQS · January 2026
The price of a product is 100 per unit. If price falls by 20% the quantity increases by 120 units. The price elasticity of demand is -1. The new quantity demanded due to fall in price is:
Suggested Answer and Working Notes:
Correct Answer: Option (D)
D. 720 units
Topics: Theory of Demand and Supply
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