Question

if you are given that the price elasticity of demand of good X is double of the price elasticity of good y when the price of good x Falls from Rs 20 to Rs 15 its quantity demanded Rises by 10%. Estimate the price elasticity of good X and good y

Answer 1

Answer:

-0. 4

Explanation:

Ed=% change in demand / % change in price

demand=10%

price=∆p/p×100

∆p=p1-p

p1=15

p=20

15-20= -5

price= -5/20×100

-25

put the value

Ed= 10%/ -25

= -0.4

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