Question

Comment upon the degree of elasticity of demand for commodity X. If the price of
the commodity falls from 28 per unit to 23 per unit and its quantity demanded
rises from 5O units to 100 units.​

Answer 1

Answer:

Elasticity=change in demand *price / change in price *demand

hence,according to the question,elasticity =5.6

since elasticity is greater than 1 ,it is relatively elastic as change in demand is greater than change in price .

This condition holds true for luxurious goods.