The price elasticity is-- 0.71 means?

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Basic Concepts of Economics

প্রশ্নঃ The price elasticity is-- 0.71 means?

  • ক. an increase in price by Tk 1 increases the demand by Tk 0.71
  • খ. an increase in price by 1% reduces the demand by 0.71%
  • গ. an increase in price by Tk 0.71 reduces the demand by Tk 1
  • ঘ. an increase in price by Tk 0.71% increases the demand by Tk 1%

সঠিক উত্তরঃ

an increase in price by Tk 0.71 reduces the demand by Tk 1
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Basic Concepts of Economics