Question

At the price of ₹ 20, quantity demanded is 40 units. If price increases by ₹ 10, price elasticity of demand is 0.4. Calculate the final quantity demanded.
cbse grade 11 ECONOMICS
Answer Appropriately ​

Answer 1

Answer:

Pressure = Force/ Area. P = 300/0.02 = 300 x 100/2 = 15000 Pa.

Answer 2

ANSWER :

• ❖ If at the price of Rs 20, quantity demanded is 40 units and when price increases by Rs.10, price elasticity of demand is 0.4; then the final quantity demanded is 48 units.

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SOLUTION :

❒ Given :-

• Original Price is Rs. 20

• Original Quantity Demanded is 40 units

• Price Elasticity of Demand is 0.4

• Price increases by Rs. 10

❒ To Calculate :-

• Final Quantity Demanded, = ?

❒ Required Formula :-

• If at Original Price of P, Original Quantity Demanded is Q and when Change is Price is △ P,Change in Quantity Demanded is △ Q; then Price Elasticity of Demand, Ed is calculated by :

$\dag \: \: \underline{ \boxed{ \sf{ \: E_d = \dfrac{ \Delta \: Q}{\Delta \: P} \times \dfrac{P}{Q}}}}$

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❒ Calculation :-

Here,

• Original Price, P = Rs. 20

• Original Quantity Demanded, Q = 40 units

• Elasticity of Demand, Ed = 0.4

It is given that,

• Price increases by Rs. 10.

So,

• Change in Price, △ P = Rs. 10

Using the formula of Price Elasticity of Demand, we get,

• $\bigstar \: \tt{E_d = \dfrac{ \Delta \: Q}{\Delta \: P} \times \dfrac{P}{Q}}$

$\longrightarrow \tt{0.4 = \dfrac{ \Delta \: Q}{10} \times \dfrac{20}{40}}$

$\longrightarrow \tt{0.4 = \dfrac{ \Delta \: Q}{10} \times \dfrac{1}{2}}$

$\longrightarrow \tt{0.4 = \dfrac{ \Delta \: Q}{20}}$

$\longrightarrow \tt{\Delta \: Q = 0.4 \times 20}$

$\longrightarrow \tt{\Delta \: Q = 8}$

Now,

• Original Quantity Demanded, Q = 40 units

• Change in Quantity Demanded, △ Q = 8 units

Thus,

• ✪ Final Quantity Demanded = Original Quantity Demanded + Change in Quantity Demanded

➨ Final Quantity Demanded = 40 units + 8 units

∴ Final Quantity Demanded = 48 units