As price of commodity increases from rs4 per unit to rs5 per unit dema

1.	As price of commodity increases from rs4 per unit to rs5 per unit demand falls from 20units to 10units find out the elasticity of demand?
Answer» $\huge\blue{Answer}$ Initial cost of commodity (P) = rs 4 Final cost of commodity (P1) = rs 5 Initial demand (Q) = 20 UNITS Final demand (Q1) = 10 units We KNOW that Ed = - P/ Q × ∆Q/∆P ∆Q = P1 - P ∆ Q= 10 - 20 ∆ Q= -10 ∆ P= Q1-Q ∆ P = 5-4 ∆P = 1 $ed = - \frac{4}{20} \times - \frac{10}{1}$ Ed = 2 hope it helps

As price of commodity increases from rs4 per unit to rs5 per unit demand falls from 20units to 10units find out the elasticity of demand?

Answer»

$\huge\blue{Answer}$

Initial cost of commodity (P) = rs 4

Final cost of commodity (P1) = rs 5

Initial demand (Q) = 20 UNITS

Final demand (Q1) = 10 units

We KNOW that

Ed = - P/ Q × ∆Q/∆P

∆Q = P1 - P

∆ Q= 10 - 20

∆ Q= -10

∆ P= Q1-Q

∆ P = 5-4

∆P = 1

$ed = - \frac{4}{20} \times - \frac{10}{1}$

hope it helps