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Theory demand chapter

Can you explain me 34 question in above photo graph sir

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Rupesh Virat

Rupesh Virat

CA Foundation

865

06-Jun-20

56

Answers (3)

Best Answer

The relationship between demand and price is inverse (normally), we ignore the negative sign and compute in absolute terms. If the movement is in same direction, then we indicate with -Ve symbol.


Suraj Lakhotia

Suraj Lakhotia

Admin

08-Jun-20

The answer is option c) -45..this is because In elasticity concepts whenever there is negative signs for elasticity we can't consider that...assume as positive...only infirior goods have negative effect... E less than 0...


Balaji R

Balaji R

CA Inter

6K+

07-Jun-20

Balaji R

The answer is option c) -45..this is because In elasticity concepts whenever there is negative signs for elasticity we can't consider that...assume as positive...only infirior goods have negative effect... E less than 0...

Here elasticity is 3 so it is greater than zero then why we taken negative sign can you explain briefly


Thread Starter

Rupesh Virat

Rupesh Virat

CA Foundation

865

07-Jun-20

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