Option 3: 0.5 -> Price elasticity of demand is calculated using the formula: Ed = (% change in quantity / % change in price). Here, quantity changes from 30 to 24 (change = -6, so % change = -6/30 = -20%), and price changes from Rs. 10 to Rs. 14 (change = 4, so % change = 4/10 = 40%). Therefore, Ed = |-20%/40%| = |-0.5| = 0.5. This indicates inelastic demand since the elasticity is less than 1. -> correct
Suppose an individual buy 30 bananas when its price is Rs. 10 per banana. When the price increases to Rs. 14 per banana, she reduces her demand to 24…
CUET UG 2025 — Economics Micro
2025mcqmedium
Suppose an individual buy 30 bananas when its price is Rs. 10 per banana. When the price increases to Rs. 14 per banana, she reduces her demand to 24 bananas. In this case,what will be the price elasticity of demand?
Official previous-year question
Held on 13 May 2025 · Verified 13 Jul 2026.
Options
- A
0.3
- B
0.2
- C
0.5
- D
0.4
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