6 Following is the market demand schedule of commodity X. Calculate the coefficient of price elasticity
of demand, when price increases from 3 per unit to 5 per unit.
Price (5)
7
4
3
2
1
Demand (units) 500 750 1.250
2.000 3.250 4.750
Answers
Answered by
0
Answer:
say the subject and chapter
Answered by
1
Answer:
-0.923 (ed<1) demand is less elastic
Explanation:
P= 3, P1= 5 ΔP = P1 - P = 5-3= 2
Δp=2
Q= 3250, Q1=1250 ΔQ= Q1-Q = 1250-3250 = -2000
ΔQ= -2000
Ed = ΔQ ÷ ΔP × P ÷ Q
= -2000 ÷ 2 × 3 ÷ 3250
= -3000 ÷ 3250
= -0.923 ans_
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