Question

A consumer buys 10 units of good X at a price of rupees 5 per unit the price elasticity of demand for this good is 2. The price fall ₹4 for unique how many units of good X will he now buy at this price
No spam or Fake
best answers will be marked as brainliest​

Answer 1

SOLUTION

GIVEN

A consumer buys 10 units of good X at a price of rupees 5 per unit the price elasticity of demand for this good is 2.

TO DETERMINE

The price fall ₹4 for unique how many units of good X will he now buy at this price

CONCEPT TO BE IMPLEMENTED

The price elasticity of demand

$\displaystyle \sf{- \frac{P}{Q} \times \frac{\Delta Q }{\Delta P } }$

EVALUATION

Let n units of good X he will buy at this price fall ₹ 4

Now

P = 5 , Q = 10

$\sf{ \Delta P = 4 - 5 = - 1}$

$\sf{ \Delta Q = n - 10 }$

Now it is given that the price elasticity of demand is 2

$\displaystyle \sf{- \frac{P}{Q} \times \frac{\Delta Q }{\Delta P } = 2 }$

$\displaystyle \sf{ \implies - \frac{5}{10} \times \frac{n - 10 }{ - 1 } = 2 }$

$\displaystyle \sf{ \implies n - 10 = 4 }$

$\displaystyle \sf{ \implies n = 14 }$

FINAL ANSWER

Hence the required number of units = 14

━━━━━━━━━━━━━━━━

Learn more from Brainly :-

1. The demand function of a product X is given as: Dx = 12-2Px stands for price. The demand at price ` 2 will be:

https://brainly.in/question/20907627

2. If total cost of producing 5 units of

output is Rs. 50 and of producing 6 units

of output is Rs. 65, then the Margin...

https://brainly.in/question/29060482