Question

Date
Page No.
2) Price elasticity of demand of a good is-2. At a price of
rs 10 per unit 40 units of this good are brought how
many will be bought at price rs 11 per unit.​

Answer 1

Answer:

q1 = 32

Explanation:

ed = -2

P = 10

q= 40

p1 = 11

Ed= (∆q/∆p)x(p/q)

∆q= q1-q

∆p = p1-p = 11-10 = 1

-2=(∆q/1)x(10/40)

-2=(∆q/1)x(1/4)

-2=∆q/4

∆q = -8

∆q = q1-q

-8 = q1 - 40

q1 = 32