Question

Price of a good falls from ₹10 to ₹8 as a result it’s demand rises from 80 units to 100 units what is the price elasticity of demand

Answer 1

Heya...

See the ans above....

Answer 2

(Q)=80. (P)=10

(Q1)=100. (P1)=8

∆Q= Q1 - Q = 100-80 = 20

∆P=P1 - P = 8-10 = -2

Ed=∆Q/∆P*P/Q

=20/-2*10/80

=5/4

=1.25

Elasticity of demand:= 1.25