Question

As a result of 10% fall in frice, its demond rises from 10
units to 12 units Find PED
3. PED=-2 40 units of this good are bought at a price of loper
whit. How many units will be bought ist a price 11 her whit? Calcul
Price of goods falls from 10 to 8 It demand rises from 200
units to 250 units calculate PED by total expenditure method.
5. A consumer buys 200 units The PED is 2 At what price will be
willing to buy 280 units.​

Answer 1

1) % Change in price = -10%

  original demand = 10

  new demand = 12

  change in demand = 2

Price elasticity of demand = 2/10 * 100   / -10

                                           =  1/5 * 100    /  -10

                                           =  20  /  -10

                                           =   -2