Question

Due to fall in price of a commodity from Rs.20 to Rs.10 per unit demand for a commodity rises by

20 units. Find quantity demanded before change in price if price elasticity of demand is 0.5.

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Answer 1

Answer:

given that,

P=20

∆P=10

Q= ?

∆Q=20

Ed=0.5

by proportionate method,

Ed= ∆Q/∆P×P/Q

0.5=20/10×20/Q

0.5=40/Q

Q=40/5×10

Q=10 ans.

Explanation:

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