Answer:
The correct answer to the following question will be "3".
Explanation:
The given values are:
Percentage demand,
= 6% i.e., .06
Percentage change in the price,
= 2% i.e., .02
Now,
Own-price elasticity of demand will be:
= [tex]\frac{Percentage \ demand}{Percentage \ change \ in \ price}[/tex]
On substituting the estimated values, we get
= [tex]\frac{.06}{.02}[/tex]
= [tex]3[/tex]
