Question

If price increases from 20 to 30 while quantity decreased from 50 to 25, then the price elasticity of demand is _____

Answer 1

Answer:

price elasticity of demands refersr to the percentage change in quantity demanded to the percentage change in price of that commodity.

now,

P increases from 20 to 30 and

Q decreases from 50 to 25

According to formula

(%change in QD)/(%change in P)

(25/50)/(10/20)

(1/2)/(1/2)

1

since

,QD is decreasing , therefore sign will be negative

therefore,

price elasticity is -1 ans.