Question

Give the formula to find out elasticity of demand by Percentage method.

Answer 1

$\huge{Elasticity \ Of \ Demand}$

$\texttt{Elasticity of demand refers to the percentage \\ change in demand for a commodity with respect \\ to percentage change in any of the factors affecting \\demand for that commodity.}$

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$\large{Percentage \ Method}$

According to this method, elasticity is measured as the ratio of percentage change in quantity demanded to percentage change in price.

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$\large{Formula}$

$\textsf{Elasticity of demand=}$ $\frac{ \% \triangle \ in \ QD} { \% \triangle \ in \ P}$

Where,

Percentage change in QD = $\frac{ \triangle Q } {Initial \ quantity }$ x 100

Change in Quantity = $Q_{1}$ - Q

Percentage change in Price = $\frac{ \triangle P} {Initial \ Price }$ x 100

Change in Price = $P_{1}$ - P

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\triangle Q = Change in Quantity
\triangle P = Change in Price
Q = Quantity
P = Price

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Hope it helped
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Answer 2

Price elasticity of demand (PED) measures the extent to which the quantity demanded changes when the price of the product changes. The formula used to calculate it is: PED = Percentage change in quantity demanded/Percentage change in price.