Question

a consumer buy 40 units of a good at price of 5 per unit suppose the price elasticity of demand is -2 at what price will he buy 32 units​

Answer 1

Answer:

the price will be 5.5

Explanation:

Ped =(_) change in quantity / change in price * initial price / initial quantity

2 = 8/change in price * 5/40

2= 1/change in price (by solving)

change in price = 1/2 =0.5

initial price =5

new price = initial price + change in price

=5+0.5 =5.5