Answer to Question #71869 in Other Economics for saad
With the increase in price of tomato from Rs. 40 per kg to Rs. 80 per kg in
super market, the demand for tomato has gone down from 40 kg to 20 kg.
Calculate the demand elasticity?
Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price
Price Elasticity of Demand = - 50% / 100% = -0.5