Question

A 4% fall in the price of X leads to a 9% rise in its demand. In case of Good Y, a 2% rise in price leads to a 8% fall in its demand. In the given case, commodity __________ is more elastic.

Answer 1

A 4% fall in the price of X leads to a 9% rise in its demand. In case of Good Y, a 2% rise in price leads to a 8% fall in its demand. In the given case, commodity Y is more elastic.