Question

8. A 4 per cent fall in the price of X leads to 8 per cent rise in demand for X, A 3 per cent rise in the price of Y
leads to 9 per cent fall in demand for Y. Calculate elasticity of demand of X and Y, assuming that price elasticity
of good Y is -1​

Answer 1

Answer:

Ed of X=(-)2

Ed of Y=(-)3