price elasticity demand of a good is -1 when its price per unit falls by rupees 1 its demand rises from 16 to 18 units calculate the price before changes
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Price elasticity = -1
original demand = 16
new demand = 18
change in qty demanded = 2
original price = x
change in price = 1
-1 = 2/1 * x/16
-1 = 2 * x/16
-1 = x/8
-8 =x
therefore , the price before change was 8 rs
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