When the price drops from Rs 2,000 to Rs 1,800, the annual quantity demanded rises from 5,000 units to 6,000 units. Which statement below is accurate?

Explanation

Option A is correct because the price elasticity of demand, calculated using the percentage change in quantity demanded divided by the percentage change in price, results in -2. Options B, C, and D refer to income elasticity or product type, which are not relevant to this price and quantity change.