Question

If the elasticity of demand for a commodity is estimated to be 1.5, and there is a decrease in
price from $2.10 to $1.90. Quantify and explain how the daily sales will be affected.

Answer 1

Answer:

icucucucucicjcjvjgigiv hai ki wo ab aap hi hai sath hi hai to aap

Explanation:

giigigigi hai ki wo ab aap hi hai sath hi hai sath hi hai sath hi hai sath hi hai sath hi hai sath hi hai sath hi hai sath hi hai sath hi hai sath hi hai sath hi hai jo song laga hua hai aur

Answer 2

Answer

Daily sales will increase with the rate of 14.3%

Explanation;

Elasticity=1.5,

% change in price = 2.10- 1.90/ 2.10 × 100 = 9.5 %

% change in quantity = % change in price × Elasticity

= 0.095 × 1.5 = 0.143 or 14.3%