Price Elasticity- Responsiveness of demand to the change in price. EP= % change in demand because of 1% change in price.

Last month the price of Honda City cars was slashed by 15%, the sales in PCNC area have gone up from 250 cars per month to 300 cars per month. Calculate the price elasticity of demand for the car. Price elasticity of leather bags is -1.5. At the current price of Rs 500 per bag, a company sells 100 bags per month. If the target is to increase the volume by 20%, what should be the new price point for the company. Sparkle detergents is the preferred detergent in most Indian cities. The company sells 5 million foof detergents in pune in one month when the price is Rs 100 per unit. The price elasticity of demand is -2.5%. In the past quarter the income in Pune grew only by 1% and the income elasticity of demand is 2.5% If the target of the company is to increase volume by 10%. Calculate the price.