Question

household increases its demand for a commodity from 40 units to 50 units when its price Falls by 10% what is the price elasticity for a commodity

Answer 1

the price elasticity is 2.5 ie. the demand is elastic demand..
$elasticity = (\% \: change \: in \: qty \div \% \: change \: in \: price)$
ie 10/40=25%= % change in qty demanded
25/10= 2.5

Answer 2

Answer:

By using Percentage Method