Question

if price elasticity is 2 and there is a rise in price from ₹52 rupees to ₹54. calculate new quantity if old quantity was 20 unit.​

Answer 1

Answer:

given that,

ed=2

P( initial price) =52

∆P(change un price) =2

Q(initial quantity) =20

to find=Q1.

by proportionate method,

ed=∆Q/∆P×P/Q

2=∆Q/2×52/20

2=52×∆Q/40

40×2=52×∆Q

∆Q=80/52

∆Q=1.53

new quantity demanded (Q1) =Q+∆Q

=20+1.53=21.53 ans

hope this will help you to understand