Question

Elasticity of demand is 0.8 and percentage change in quantity demanded increases by 20%. Find the value of percentage change in price. ​

Answer 1

$\bf\underline{Given :-}$

▪Elasticity of demand (Ed) = 0.8

▪% change in quantity demanded = (+)20%

¤ % change in price = ?

$\bf\blue {Formula :-}$

$ed = ( - ) \frac{\% \: change \: in \: quantity \: demanded}{\% \: change \: in \: price} \\ \\ 0.8= ( - ) \frac{20\%}{\% \: cang \: in \: price} \\ \\ \% \: change \: in \: price \: = ( - ) \frac{20}{0.8} \\ \\ \% \: chnge \: in \: price = ( - )16$

$\boxed {Answer = (-)16}$