Question

A consumer buys 40 units of a good... ...........buy 32 units?

Answer 1

Answer:

price: 5 units:40

new price: new unit: 32

price elasticity of demand: -2

Ped = ∆q÷∆p*p÷q

2=8÷∆p*5÷40

2=∆p

new price =40+2

= 42