Question

A consumer buys 20 units of a good at rupees 10 per unit. The price elasticity of demand is -1
Calculate the quantity demanded by the consumer if price falls to rupees 8 per unit

Answer 1

Answer:

I have 55

Explanation:

And I have been working on the same for the last few days but I have been working with the company and I have been working with

Answer 2

Answer:

24

Explanation:

P1 = Rs. 10, P2 = Rs. 8

Q1 = 20 units, Q2 = ?

Now,

Price Elasticity = change in quantity × P1

change in price P2

-1 = change in quantity × 10

(8 - 10) 20

-1 = change in quantity × 1

-2 2

change in quantity = 4

New quantity = Q1 + Change in quantity = 20 + 4 = 24!

hope this helps :)