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MICROECONOMICS CH : 6 PRICE ELASTICITY OF DEMAND — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsMICROECONOMICS CH : 6 PRICE ELASTICITY OF DEMAND1 Mark
MCQ
When 8% decrease in price of a commodity causes 2% increase in expenditure of the commodity, the elasticity of demand is:
  • A
    zero
  • ✓
    greater than one
  • C
    less than one
  • D
    unity
✓

Answer

Correct option: B.
greater than one
(b)

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