Question

a consumer purchased 30 unit of commodity at price rs 50 what price will purchased 25 units if elastic of demand in 2​

Answer 1

ANSWER

Given: Q−10,Q

1

=12,P=5,P

1

=4

ΔP=(4−5)=−1,ΔQ=(12−10)=2

E

d

=(−1)

Q

P

∗

ΔP

ΔQ

=(−)

10

5

∗

−1

2

=1

E

d

=1 Unitary elastic demand.