Question

as a result of 10 percent fall in a price of a good its demand
rises from 100 units to 120 units find price of Elasticity
of demand.​

Answer 1

Answer:

PED will be 2

Explanation:

PED = %change in Q.D / %change in price

so here,

%change in Q.D = change in quantity / original quantity * 100

thus,

change in quantity is (120-100) = 20

original quantity (initial) = 100

So , % change in Q.D = 20 (by formula)

PED = 20 /10

= 2.