If the price declines from 400 to 300 and as a result quantity demanded increases from 1100 to 1400, elasticity of demand is
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ΔQ = (400-300)= 100
ΔP = (1100-1400)=300
Original price = 400
Original quantity demand = 1100
Hence
Elastic of demand = ΔQ/ ΔP × P/Q
=100/300 × 400/1100
= 0.12 (ANS)
ΔP = (1100-1400)=300
Original price = 400
Original quantity demand = 1100
Hence
Elastic of demand = ΔQ/ ΔP × P/Q
=100/300 × 400/1100
= 0.12 (ANS)
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