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:

The formula of price elasticity of demand is:

let the p be 100

∆Q/∆P × p/q

=> 60/20 × 100/200

=>3/2

[price elasticity of demand = 1.5 ]

Hope it helped.