Price elasticity of demand of a good is (-) 1. At a given price the consumer buys 60 units of the good. How many units will the consumer buy if the price falls by 10 percent?
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E_(P)=(% "change in " Q_(d))/(% " change in P")` <br> `(-)1 =(% " change in " Q_(d))/(-10%)` <br> `:.% "change in " Q_(d)=+10%`. <br> Demand after price falls `=Q+10% " of " Q=60+ (10% " of " 60)=66 ` units.
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