Question

Price of a commodity decreases from 15 to 12 Rs. and quantity demanded increases by 25%. Find the value of Ed.​

Answer 1

$\bf\underline{Given :-}$

▪Price (P) = 15

▪New Price (P1) = 12

▪Change in Price (ΔP) = P1 - P

12 - 15 = (-)3

▪% change in quantity demanded = (+) 25 %

▪% change in price =

$\frac{Δp}{p} \times 100 \\ \\ \frac{( - )3}{15} \times 100 = ( - )20\%$
______________________ _ _

$\bf\blue {Formula :-}$

$ed = ( - ) \frac{\% \: change \: in \: quantity \: demanded}{\% \: change \: in \: price} \\ \\ ed = ( - ) \frac{25\%}{ ( - )20\%} = 1.25$

$\boxed {Ed = 1.25}$$\bf\green {(Answer)}$