Question

elasticity of demand for good a good is -1.8.at a given price, a consumer buys 100units
of it. how many units will he buy if price falls by 10percent...pls answer my question yaar

Answer 1

Formula of Elasticity is = % change in Quantity/% change in price

Let %change in Qty be x

-1.8 = x/-10

% change in price is shown in negative because price falls.

x = -1.8 * -10

x = 18 %