Calculative PED, when price of good decreases to one fourth Of original price and demand increases 3 times.
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p1=p1
p2=1/4th of p1
=p1/4
%change in price=((p1/4)-p1 /p1) *100
=-3/4 *100
=-75%
qd1=q1
qd2=3q1
%change in qd= 3q1-q1 /q1 *100
=200%
Price elasticity of demand= %change in qd/%change in price
=- 200/75
=-2.67%
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