Question 8
(The following is a purely imaginary scenario)
The demand for ice creams at different prices in the supermarket at IITM is specified in Table-1. Given this data, answer the subquestions (Note: For all the sub-questions, round your answer to two decimal places. Eg: If your answer is 10.256, then round it to 10.26)
| Price | Ice-cream Demand |
|---|---|
| 10 | 160 |
| 15 | 140 |
| 20 | 120 |
| 25 | 100 |
| 30 | 80 |
Table-1
What is the elasticity of the linear demand-response curve, when the price is Rs. 35? (Note: Enter the answer rounded to two decimal places. For example, if the answer is “1.235”, then enter it as “1.24”)