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If the local pizzeria raises the …

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If the local pizzeria raises the price of medium pizza from Rs 60 to Rs 100 and quantity demanded falls from 700 to 100 pizzas a night, what is the price elasticity of demand for pizzas?
  • 1 answers

Gaurav Seth 5 years ago

 

Using arc elastic equation
(Q1 - Q2) (P1 + P2) ÷ (Q1 + Q2) (P1 - P2)

q1=700
q2=100
p1= 60
p2= 100

[600 × 160] ÷ [800 × 40] = 3

(hint :- don't take Minus in the answer )

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