Question

A consumer buys 18 unit of good at price elasticity of demand for the good is 1 how many unit the consumer will pay buy at price of 10 per unit




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Answer 1

Answer:

elasticity of demand = ( change in quantity demand) / ( change in price

Change in quantity demand =( delta q/q)

Change in price = ( delta p /p)

Intitial price =9 final price = 10

Initial quantity demand = 18

Final quantity demand = q

Change in quantity demand =(q-18)

Change in price =(10-9)

Change = final - initial

Ed =(change in quantity demand / initial quantity demand) / ( change in price / initial price)

Ed =-1 (given)

-1=(q-18/18)/(1/9)

-1=(q-18)/2

-2=q-18

Q=16