Suppose that the price of a commodity increases from 90 to 110 and the demand curve shows that the corresponding reduction in quantity demanded is from 240 units to 160 units.Then, the coefficient of the price elasticity of demand will be

The correct answer is (b).

The price elasticity of demand is a measure of how responsive consumers are to changes in price. It is calculated by dividing the percentage change in quantity demanded by the percentage change in price. In this case, the percentage change in price is 22.22% (110 – 90 / 90 * 100), and the percentage change in quantity demanded is 33.33% (240 – 160 / 240 * 100). Therefore, the price elasticity of demand is 2.4.

Option (a) is

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