Question : A product has an initial quantity demanded of 80 units at a price of INR 6 per unit. Due to a price change, the new price is INR 8 per unit, and the new quantity demanded is 60 units. Calculate the percentage change in quantity demanded.
Option 1: -10%
Option 2: -20%
Option 3: -25%
Option 4: -30%
Correct Answer: -25%
Solution : The correct answer is (c) -25%
Initial Quantity Demanded = 80 units
New Quantity Demanded = 60 units
Using the formula, we can calculate the percentage change in quantity demanded:
Percentage Change in Quantity Demanded = [(New Quantity Demanded - Initial Quantity Demanded) / Initial Quantity Demanded] * 100
= [(60 - 80) / 80] * 100
= (-20 / 80) * 100
= -25%
The correct percentage change in quantity demanded is -25%.
Therefore, the answer is: -25%
