Question

calculate price elasticity of demand
Q1
price , demand
10 , 20
20 , 15

Q2
price , demand
9 , 100
8 , 80

please explain step by step I will follow u​

Answer 1

price elasticity of demand =

$\frac{(new quantity - initial quantity)}{ (new price - initial price)}$    multiplied by    $\frac{initial price}{initial quantity demanded}$

Q1)  

initial qty or demand = 20

initial price = 10

new qty = 15

new price = 20

using the formula,

$\frac{15-20}{20-10}$ * $\frac{10}{20}$

= -5 / 10 * 1 / 2

= -1 / 2 * 1 / 2

= -1 / 4 = - 0.25

price elasticity of demand is always taken as positive.

So the answer for the first question is 0.25 .

Q2)

initial qty or demand = 100

initial price = 9

new qty = 80

new price = 8

after inserting these values in the formula,

we get 1.8 .

hope it helps :D