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Suppose the price of apples increasedfrom Rs 100 to Rs 200 per kg. Whereas theuunity demand decreased foom lo to b.Find elasticity of demand. Also draw thedemand curve and discuss the nature ofthe price elasticity of demand?​

Answer»

<P>Answer:

The price elasticity of demand (which is often shortened to demand elasticity) is defined to be the PERCENTAGE change in quantity DEMANDED, q, DIVIDED by the percentage change in price, p. The formula for the demand elasticity (ǫ) is: ǫ = p q dq DP .



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