- If price of an article decreases from Rs 8 to Rs 7.5, when quantity demanded increases from Q1 units to 225000 units, and if point elasticity of demand is -2, what is the value of Q1?
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1
Price for 225000 quantity = Rs 7.5
Price for Q1 quantity = rs 8
Thus according to question
225000 * 7.5 + 8 Q1 = 2
Q1 = 210937
thus the quantity left id 210937
Price for Q1 quantity = rs 8
Thus according to question
225000 * 7.5 + 8 Q1 = 2
Q1 = 210937
thus the quantity left id 210937
Answered by
0
The market price of a commodity is a key determinant of the demand of the product in the market especiallly when the product has got a substitute product in the markret. If the price ids decreased this means that there is an increase in the quantrity demanded and if the price is increased then there is a decrease in the quantity demanded.
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