Previous Year SSC CHSL 2017 Tier I Questions

Question

A company faces a -2.5 price elasticity of demand for its product. It is presently selling 10,000 units/month. If it wants to increase quantity sold by 6%, it must lower its price by

A 3.50%
B 15%
C 2.50%
D 2.40%

Answer & Explanation

Answer: Option [D]