Question

consumer buys 200 unit of a good at a price of rupees 5 per unit with change in price is only by 100 unit if the price elasticity is -1 find out the change price​

Answer 1

Answer:

40

Explanation:

Answer 2

Answer:

Q = 200 P = 5

Q1 = 100 P1 = x

change in quantity (∆Q) = 100

change in price (∆P) = (x - 5)

Ep = ∆Q/∆P × P/Q

- 1 = 100/x - 5 × 5/200

= 2.5

subsitute in eq. 2nd

∆P = x - 5

2.5 = x - 5

x = 5+2.5 = 7.5