Question

a consumer buy 13 units of goods at a price rs 11 when prices rises rs 13 he biys 11 units use expenditure method to find out elasticity and also comment the nature of the goods..​

Answer 1

Explanation:

Given, P=Rs.10;P

1

=Rs.9;△P=P

1

−P=Rs.9−Rs.10=(−)Rs.1

Q=30 units;Q

1

=?

E

d

=(−)1

Price elasticity of demand (E

d

)=

Q

P

×

△P

△Q

−1=

30

10

×

−1

△Q

△Q=3

Now, △Q=Q

1

−Q

3=Q

1

−30

Q

1

=30+3=33.

Consumer will buy 33 units at a price of Rs.9 per unit.

Answer 2

Answer:

come at meet

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