Price elasticity of demand of a good is (-)1. At a given price the con – InterviewSolution

1.	Price elasticity of demand of a good is (-)1. At a given price the consumer buys 60 units of the good. How many units will the consumer buy if price falls by 10 per cent?
Answer» GIVEN: Ed = -1, Q1 = 60, % Change in Price = -10% Ed = % Change in Price/% Change in Qty -1 = -10/% Change in Qty % Change in Qty = (-10)/(-1) % Change in Qty = 10 Therefore: % Change in Qty = ΔQ/Q0100 10 = ΔQ/60100 ∆Q = 10*60/100 ∆Q = 6 Q1 = ∆Q + Q0 Q1 = 6+60 Q1 = 66 New Qty is 66. Explanation:

Discussion

No Comment Found

Related InterviewSolutions

DIOshowsdalaThe followingcarsnumberacarutimanufactured byfaedarzeashelp ofTata kotona2016-17Reprecentpie Ciagamseduchincass (2)shout naps on cos whomaenti15, 75, oroTalaluctos7,25,oooHyundai5, 50,000
Write names of some important index number.
What do you mean by explicit cost? Are the following included in it?1) Payment of wages to employees of the firm.2) Wages for entrepreneurs own labour.3) Depreciation Cost.4) Rent of entrepreneurs own building.5) Payment of electricity bill.Don't Spam❌
What are the techniques for measuring correction ?
What is data represented in tabular presentation?what are parts of a table?
If we increase the retention rate, than the price of the share will increase or decrease?
Oston 14 of 30In the assembly line balancing, cycle time (the ratio of available production time to scheduled production) is the
Why does each country need a representative on the World Stage? Why do countries need to collaborate and help each other? What do you think are the benefits of doing so?
America is called the "Melting Pot". Why do you think we have earned that nickname? What are the benefits of diversity within our country?
. For the circuit shown in Figure below, calculate the following:(Marks 12)(a) Total resistance across the source(b) Total current from the source(c) Current through 910 Ωthe resistor (d) Voltage from A to point B