Question

1. Suppose that originally, a product was being sold at 10 per unit and the quantity demanded was
1,000 units. The product price changes to ₹14 and, as a result, the quantity demanded changes to
500 units. Calculate the price elasticity of demand.
Ed = (- 1.25)​

Answer 1

the answer is

p.ed= (-1.25)

Important points

1. delta Q =Q2-Q1

i.e 500-1000

=-500

2. delta P = P2-P1

=14-10

=4

hope it helps.

Answer 2

Answer:

the price elasticity of demand is -1. 25