What is the price elasticity of demand for a product if a 10% increase in price leads to a 20% decrease in quantity demanded?

January 14, 2025 by Hamid

A) 0.5

B) 1

C) 2

D) 10

For Explanation Click Here:

Price elasticity of demand (PED) is calculated using the formula:

The elasticity is 2 (ignoring the negative sign, as elasticity is typically expressed as an absolute value).