Question

if the price of a commodity falls by 20℅ its quantity demanded rises from 200 to 260 . calculate price elasticity of demand..?? ​

Answer 1

Answer:

we have given =%age change in price

Explanation:

Ed=%age change in quantity demanded/%age,change in price

% age change in demand=260-200/200*100

60/200*100=30%

Ed=30/20=1.5

means quantity demanded rise by 1.5 times