Question

Price of good rises from 100 to150 per init As a result demand false By 25 %.Find out ED ...​

Answer 1

Answer:

P1 = 100

P2 = 150

so.. ∆P = P1 -P2

∆P = -50

P % = -50 % (( [∆P/P1 × 100] ))

NOW ,,,

Ed = demand % / price %.

Ed = 25 % / -50 %

Ed = 1 /-2

Ed = (-0.5)

here negative sing refer to the comparision between price amd demand.