Question

If price of an article decreases from Rs 80 to Rs 60, quantity demanded increases from 600 units to 750 units. Find point elasticity of demand?

Answer 1

80_60=20 then 750-600=150then elasticity of demand=percentage change in price/percentage change in demand=150/20= 7.5

Answer 2

-0.1

Step-by-step explanation:

The Coefficient of price elasticity$= E_p = \frac{\Delta q}{\Delta p} \times \frac{p}{q}$

Where, q is quantity, p is price and Δ is the change.

Therefore, we have

Δq= 600 –750 =-150

Δp=80–60=20

Hence,

$E_p=\frac{-150}{20}$ × $\frac{8}{600}$

$E_p =- 0.1$

To learn more

i)The quantity demanded increases from hundred units to 200 units when the price decreases from RS 12 RS 10 .calculate the elasticity of demand

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ii)If price of an article decreases from P1 to Rs 25, quantity demanded increases from 900 units to 1200 units. If point elasticity of demand is 2 find P1?

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