Question:medium

If the price elasticity of demand for a commodity is -2.5% and the percentage decrease in the quantity demanded is 10%, find out the percentage change in its price.

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Remember that price elasticity of demand is usually a negative number because price and quantity demanded move in opposite directions.
If you get a positive percentage change for price, it means the price has increased.
  • 25%
  • -25%
  • 4%
  • -4%
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The Correct Option is C

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