Question

18. The quantity demanded of a commodity falls by 5 units when price rises by 1 per unit. Its price elasticity
of demand is (-) 1.5. Calculate the price before change if it this price quantity demanded was 60 units.
(18)​

Answer 1

this question is quiet simple

this is how you solve it

we know that price elasticity is change in quantity/change in price(/ =means divided by) X older price/older quantity

we know that change in quantity is 5 units and change in price is 1 unit and the older quantity demanded was 60 units so the equation becomes something like this 5/1 X P/60 =1.5

by solving the equation you would get the answet as 18