Question

a consumer buys 200 units of good at rs 20 per unit.price elasticity of demans is (-)2.at what price he willing to purchase 300 units?calulate

Answer 1

With the end goal to get back the state of purchaser balance, MU of an item must be expanded.

In this way extra amount requested ought to be lessened with the end goal to build MU of an item.

According to law of decreasing peripheral utility, more you expend extra utility from extra product continues winding up less.