Question

me price elasticity of demande
umber of substitutes, (ii) Nature of the commodity.
The demand by a consumer for a commodity declines by 10 per ce
increases from 5 to 3 6 per unit. What is the price elasticity o
commodity?
Calculate the price elasticity of demand for a commodity when its
25% and quantity demanded falls from 150 units to 120 units.
When price of a commodity falls by 31 per unit, its q​

Answer 1

Answer:

Given: Q−10,Q

1

=12,P=5,P

1

=4

ΔP=(4−5)=−1,ΔQ=(12−10)=2

E

d

=(−1)

Q

P

∗

ΔP

ΔQ

=(−)

10

5

∗

−1

2

=1

E

d

=1 Unitary elastic demand