Question

1. The price of a commodity falls from 50 to 30, resulting in an increase in the purchase of the
commodity from 200 units to 220 units. Calculate the price elasticity of demand.​

Answer 1

Answer:

0.25

Explanation:

ΔP=P1-P

50-30=20

ΔQ=Q1-Q

200-220=20 ( - sign is not important)

then

Divide with each other

ΔQ÷Q =20÷200

/

ΔP÷P=20÷50

20÷200×20÷50=1/4

ep=0.25