Question

calculate the price elasticity of demand of the good.​

Answer 1

Demand for a good is unit elastic when the percentage change in quantity demanded is equal to the percentage change in price. inelastic: Demand for a good is inelastic when a change in price has a relatively small effect on the quantity of the good demanded.

U can use this..

Answer 2

Okay so the Intial Price is 16 Rupees per unit, with it the quantity demanded is 80 units, just as the price increases to 20 rupees per unit the quantity demanded falls by 25% meaning it will be$80 * \frac{25}{100} = 20\\80 - 20 = 60$

the formula for price elasticity is

$\frac{Q_2-Q_1 }{Q_2} * \frac{P_1}{P_2 - P_1}$

hence

$\frac{60-80}{60} * \frac{16}{20-16} \\\\\frac{-20}{60} * \frac{16}{4} \\-\frac{4}{3} = -1.333$

Hope this helps :)