Question

calculate price of elasticity of demand if demand increases from 4units to 5 units due to fall in price rs 10 to rs 8​

Answer 1

Answer:

1 ( unit elasticity)

Explanation:

original price = 10

change in price = 8

original quantity = 4 units

change in quantity = 5 units

we use Arc elasticity formula

• Ep = q1-q2 / q1 + q2 × p1+ p2 / p1 - p2
• = 4-5/ 4+5 × 10+8/10-8
• = 1