Question

A 5% fall in price of a good leads to 10% rise in it's demand. calculate ped.​

Answer 1

Answer:

Explanation:

Price Elasticity of Demand for 'x'

Price Elasticity of Demand (Ed)= Percentage change in Quantity demandedpercantage change in price=10%−5%

Price Elasticity of Demand (Ed)=(−)2

Price Elasticity of Demand for 'y '

Price Elasticity of Demand (Ed)= Percentage change in Quantity demandedpercantage change in price=−6%20%

Price Elasticity of Demand (Ed)=(−)0.3