1.

22. Price of a commodity increases from 24 to 26, resultantly the demand, for that commoditydecreases from 100 units to 80 units, Calculate price elasticity of demand, ​

Answer»

<P>Explanation:

Given,P=Rs.26; P

1

=Rs.30;

△P=P

1

−P = Rs.30−Rs.26=Rs.4

Q=30 units; Q

1

=15 units; $$

△Q=Q

1

−Q=(15−30) units = (−)15 units

Price elasticity of demand (E

d

)=(−)

Q

P

×

△P

△Q

=(−)

30

26

×

4

−15

=3.25


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