Kumar used to eat 30 samosas in a month when the price of each samosa was f 1 2. 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?

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Q: 48 (CAPF/2020)
Kumar used to eat 30 samosas in a month when the price of each samosa was f 1
2. 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?

question_subject: 

Maths

question_exam: 

CAPF

stats: 

0,16,16,16,2,13,1

keywords: 

{'price elasticity': [0, 0, 0, 3], 'demand': [0, 0, 0, 3], 'samosa': [0, 0, 0, 1], 'price': [0, 3, 1, 12], 'samosas': [0, 0, 0, 1], 'kumar': [0, 1, 0, 1]}

The price elasticity of demand measures the responsiveness of quantity demanded to a change in price. It is calculated by dividing the percentage change in quantity demanded by the percentage change in price.

In this case, the price of samosas increased from 12 to 15, which is a 25% increase (percentage change in price). The quantity of samosas consumed decreased from 30 to 20, which is a 33.3% decrease (percentage change in quantity demanded).

To calculate the price elasticity of demand, we divide the percentage change in quantity demanded (-33.3%) by the percentage change in price (25%). This gives us a value of -1.33.

However, the question asks for the absolute value of the price elasticity of demand, so the correct answer is 1.33.

Option 1, 1-33, is incorrect as the negative sign should not be omitted.

Option 2, 100, is not the correct value for the price elasticity of demand in this case.

Option 3, 0-75, is also incorrect as the negative sign should not be present without a value.

Option 4, 0.08, is not the correct value for the price elasticity of demand in this case.

Therefore