Question

calculate the price elasticity of demand for a commodity and its price increases by 25% and quantity demanded Falls from 150 units to 120 units​

Answer 1

Answe=20%/25%=0.8

Explanation:change in quantity demand= 150-120=30

%change in quantity demand=30/150*100

=20%

Ep=%change in quantity demand /

% change in price

=20%/25%

=0.8

Answer 2

Answer:

=0.8

Explanation:

change in quantity demand =150-120=30%

change in quantity demand = 30/150×100=20%

eD=change in quantity demand

_______________________

change in price

=20%

_____

25%

= 4/5. =0.8