Price increased by 5% means +5 and demand decrease by 8% means -8 so,
As per frmla;
%Q/%P
= -8/5
= -1.6 BUT, as we know that we ignore negative sign in the value of elasticity of demand for sake of simpicity
Therefore, 1.6 is the final answer
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Ashish answered this
Price increased by 5% means +5 and demand decrease by 8% means -8 so, As per frmla; %Q/%P = -8/5 = -1.6 BUT, as we know that we ignore negative sign in the value of elasticity of demand for sake of simpicity Therefore, 1.6 is the final answer
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Yogita answered this
As the price of peanut packets increases by 5% the demand for number of peanut packets falls by 8%.what is the elasticity of demand for peanut packets ?