The price elasticity of demand measures the responsiveness of the quantity demanded of a good to a change in its price. A value greater than 1 indicates elastic demand.
Kumar used to eat 30 samosas in a month when the price of each samosa was ₹12. When the price of samosa increased to ₹15 per piece, he eats only 20 samosas a month. What is the price elasticity of demand for samosa by Kumar ?
Asked in UPSC CAPF 2020 · Topic: Nature of Indian Economy (Developing Economy Characteristics)
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