Question

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.​

Answer 1

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