Question

ii. Define Law of<br />Hi. At 26 per unit, the demand for commodity is 30 units. If price increases from 26<br />to 30 per unit, the demand decreases to 15 units. Calculate the price elasticity of demand.<br />questions.<br />(4 M)​

Answer 1

Answer:

Given,P=Rs.26; P

1

=Rs.30;

△P=P

1

−P = Rs.30−Rs.26=Rs.4

Q=30 units; Q

1

=15 units; $$

△Q=Q

1

−Q=(15−30) units = (−)15 units

Price elasticity of demand (E

d

)=(−)

Q

P

×

△P

△Q

=(−)

30

26

×

4

−15

=3.25