A consumer buys 160 units of a good at a price ruees 10 per unit, pric

1.	A consumer buys 160 units of a good at a price ruees 10 per unit, price fall to rupees 6 per unit. How much commodity will the consumer buy of the good when elasticity of demand is -2
Answer» ANSWER: In the above numerical elasticity of demand has been specified with a negative sign. Thus we will not use '' - ' in the formula as a prefix. THEREFORE the formula will be - Ed = (-) P/Q × Δ Q/ Δ P Now P = Rs 8 ; P1 = Rs 6 ; Δ P = Rs 6 - Rs 8 = (-)Rs 2 Q= 160 Units ; Q1 = X Units ; Δ Q= Q1 - Q = (X-160)units Ed= (-)2 Therefore (-)2= 8/160 × X - 160/-2 = X - 160/-40 X - 160 = 80 X=240 Therefore the consumer will BUY 240 units at the new price. Hope it helps . Explanation:

A consumer buys 160 units of a good at a price ruees 10 per unit, price fall to rupees 6 per unit. How much commodity will the consumer buy of the good when elasticity of demand is -2

Answer»

In the above numerical elasticity of demand has been specified with a negative sign. Thus we will not use '' - ' in the formula as a prefix. THEREFORE the formula will be - Ed = (-) P/Q × Δ Q/ Δ P

Now P = Rs 8 ; P1 = Rs 6 ; Δ P = Rs 6 - Rs 8 = (-)Rs 2

Q= 160 Units ; Q1 = X Units ; Δ Q= Q1 - Q = (X-160)units

Ed= (-)2

Therefore (-)2= 8/160 × X - 160/-2 = X - 160/-40

X - 160 = 80

X=240

Therefore the consumer will BUY 240 units at the new price.

Hope it helps .

Explanation:

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