2564EconomicsMedium
The price decrease from Rs 2,000 to Rs 1,800 Quantity demanded per year increases 5000 to 6000 units. Which of the following is correct?
AIncome elasticity is + 0.5
BThe good is inferior
CIncome elasticity is + 2
DThe price elasticity of demand is -2
Correct answer
D. The price elasticity of demand is -2
Explanation
The correct answer is The price elasticity of demand is -2.