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Since price elasticity is 1 , total revenue doesnot change....therefore 12x4000 = 48000 .... therefore 48000/20000 =2.4Can anyone help me wid dis question.
Its may/june 2006 Paper 1 Q7
The price elasticity of demand for good X is 1. At a price of $12, quantity demanded is 4000 units.
What will be the price when quantity demanded is 20 000 units.
A $2.00 B $2.40 C $2.66 D $20.00