Question

Price of the commodity increase from Rs.50 to Rs.60 per unit. Quantity demanded initially was 200 units. What should be the new quantity so that Ed is umiatry .​

Answer 1

Answer:

160

Explanation:

Ed is unitary.That means it is one.

so

1= % change in quantity demanded/% change in price

1= 20/% change in price                    (% change in price = {(p - p1)/p}*100)

% change in price=20%

And since price is rising Quantity demanded must fall

so it is falling by 20%

now, initial demand was 200 units

20% of 200 is 40

quantity demanded falls from 200 to 160