A consumer spend 1500 unit at a price of rupee10 per unit when price rises 20% a consumer spend continue 1500 unit on a good calculate ep by percentage method
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2
Answer:
Answer
Initial price (P) =Rs.10
Rise in price by 20 per cent = 10×
100
20
=Rs. 2
New price (P
1
) Rs.10+Rs.2=Rs.12
Given, P=Rs.10; P
1
=Rs.12;
△P=P
1
−P=Rs.12−Rs.10=Rs.2
Q=
10
1,500
=150units;Q
1
=
12
1,500
=125units;
△Q=Q
1
−Q=(125−150)units=(−)25units
Price elasticity of demand (E
d
)=(−)
Q
P
×
△P
△Q
=(−)
150
10
×
2
−25
=
6
5
=0.83
Price elasticity of demand =0.83
Answered by
2
Initial price (P) =Rs.10
Rise in price by 20 per cent = 10× 20/100
=Rs. 2
New price (P 1 ) Rs.10+Rs.2=Rs.12
Given, P=Rs.10; P 1 =Rs.12;
P=P 1−P=Rs.12−Rs.10=Rs.2
Q=Q1=Q=(125-150) units =(-)25 unit s
price elasticity of demand (Ed)
(-)p/q x △q/△p
=(-)10/150 x -25/2 =0.83
price elasticity of demand=0.83
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