Question

If the price of a product increases from R200 to R250 then demand falls from R450 to 300 Units . Calculate the Ped and determine the degree of elastic (show Calculations)

Answer 1

Answer:

Elasticity of demand = - 1.8 (Elastic, since greater than 1).

Explanation:

p1 = R 200; P2 = R 250

Q1 = 450; Q2 = 300

in this case apply mid point method to determine the price elasticity of demand.

$e \: = \frac{(q2 - q1)(p2 + p1)}{(q2 + q1)(p2 - p1)}$

$e \: = \frac{(300 - 450)(250 + 200)}{(300 + 450)(250 - 200)}$

$e \: = \frac{( - 150)(450)}{(750)(50)}$

$e \: = \bold{ - 1.8}$

Answer 2

Answer:

a a a a a a

Explanation: