Question

Calculate price elasticity of demand if demand increases from 4 units to 5 units due to
fall in price from Rs 10 to Rs 8.​

Answer 1

Answer:

ep=-1.25

Explanation:

p1=10

p2=8

Δp=8-10=-2

q1=4

q2=5

Δq=5-4=1

ep=Δq÷Δp×p÷q

      $\frac{1}{-2} *\frac{10}{4}\\\frac{10}{-8}\\-1.25$