Calculate the quantity demanded of a
commodity when the price increases from Rs.4 to
Rs.6. The original quantity demanded was 40 units
and price elasticity of demand is 0.5.
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Answer:
P= 4
∆P=2
Q=40
∆Q=?
to find, =q1
ed=0.5
by proportionate method,
ed=∆Q/∆P×P/Q
0.5=∆Q/2×4/40
0.5=∆Q/20
10.0=∆Q
∆Q=10
quantity demanded(q1) =∆Q+q
=10+40=50
Explanation:
P=initial price
∆P= change in price
Q=quantity demanded
∆Q= change in quantity demanded
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