Question

34. The price elasticity of demand of commodity X is half of price elasticity of demand of commodity Y. When
price of X falls by 40%, its demand rises by 20 units. Calculate price elasticity of demand of commodity
X and Y, if originally 100 units of X were demanded at price of 5 per unit.​

Answer 1

Answer:Answer:

Price elasticity of demand of commodity X =₹ 1/40

Price elasticity of demand of commodity Y = ₹1/20

Explanation:

Price elasticity of demand = (-)p/q * ΔQ/ΔP

Initial price (p) = ₹5

p= ₹5 , q=₹ 100

change in price (Δp)= P-p =(-)₹40

change in quantity (Δq)= Q-q =₹20

price elasticity of demand commodity X = (-) p/q * ΔQ/ΔP

                                                                  =(-)5/100*(-)20/40

                                                                  =₹1/40

Given ,price elasticity of demand of commodity X = 2*price elasticity of demand of commodity Y

So, Price elasticity of demand of commodity Y = 2*

                                                                             =2*1/40

                                                                             = ₹1/20

Explanation:

Answer 2

price elasticity of demand of commodity  X = -0.5

price elasticity of demand of commodity  Y =  -1

Explanation:

given data

price elasticity of commodity X = half of price elasticity of commodity Y

X falls = 40%

demand rises = 20 units

originally = 100 units of X

price = 5 per unit.

to find out

price elasticity of demand of commodity  X and Y

solution

we will consider here elasticity of commodity Y  = a

so price elasticity of commodity X will be

price elasticity of commodity X = 0.5 × a

and

we know that price elasticity of demand of commodity is express as

price elasticity of demand of commodity = change in demand ÷ change in price ......................1

so here change in demand for goods will be

change in demand = $\frac{20}{100} \times 100$  

change in demand = 20 %

so that here elasticity of demand of commodity  X will be as

elasticity of demand of commodity  X = $-\frac{20}{40}$

elasticity of demand of commodity  X = -0.5

so we can say  

0.5 × a  = -0.5  

a = -1

so

price elasticity of demand of commodity  X = -0.5

price elasticity of demand of commodity  Y =  -1

here -ve sign mean inverse relation between the price and demand  

Learn more :

price elasticity of demand of commodity

1. https://brainly.in/question/13828673