Question

as the price of petrol is increased by 5% the number of cars demanded first by 8% state the elasticity of demand​

Answer 1

Petrol and car both are complementary goods. If price of one commodity increases then the demand of other commodity decreases. Complementary goods have negative relationship with each other.

Solution :-

$ed = ( - )\frac{\% \: change \: in \: quantity \: demanded}{\% \: change \: in \: price} \\ \\ ( - ) \frac{8}{5} = ( - )1.6$

$\boxed{Ed = (-)1.6}$ (Answer)