- 04/25/2019 at 2:51 pm #618518EduGorillaKeymasterSelect Question Language :
Directions: In Econoville, there is one grocery shop, Ecoconvenience. It used to sell fresh milk at Rs. 20 per litre. At this price, 400 litres of milk was sold per month. After some time, the price was raised to Rs. 30 per litre.
This rise in price led to the following:
Only 200 litres of milk was sold every month.
The number of boxes of cereal customers bought went down from 280 to 240.
The number of packets of powered milk customers bought went up from 90 to 220 per month.
What can be said about the price elasticity of demand for fresh milk?
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- It is perfectly elastic.
- It is elastic.
- It is perfectly inelastic.
- It is inelastic.
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