Question

Determine price elasticity of demand using percentage method.
Quantity Total Outlay(in₹)
20 100
30 200

Answer 1

Answer:

Explanation:

Aloha !

30-20/200-100

=10/100

=1/10

=0.1

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@ Twilight Astro ✌️☺️♥️

Answer 2

Answer:

Old price = ?4. New price=3

Expenditure = p*q

Expenditure increase from 200 to 300.

For old price for ner price

E= p*q. E=p*q

200=4*q. 300=3*q

Q=200/4. Q=300/3

Q=50. Q=100

Now quantity is increase from 50 to 100. Now apply the formula

Ed=(ch in q *100/ q)/(ch in p *100/ p )

=(50*100/50)/( -1*100/4)

Ed = -4