Question

Que. No. 3
When 10% change in price leads to 15% change in quantity demanded, then demand is
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Answer 1

Explanation:

If the magnitude of elasticity is greater than one then demand is said to be elastic. This corresponds to the example in which the quantity demanded went up by 15 percent for a 10 percent decrease in price. In this case the price elasticity of demand is -15/10 or -1.5.

Answer 2

1.5%

Explanation:

The degree to which people, customers, or producers adjust their demand or the amount provided in reaction to price or income fluctuations is referred to as price elasticity.

Own price Elasticity of any commodity = $\frac{ Percent-Change-in-Quantity-demanded}{Percent-Change-in-Price}$

Here, Percent increase in quantity demanded is given as 15%

and percent decrease in price is 10%.

Therefore, Elasticity of demand of given quantity = = - 1.5 %.

Here we consider a modulus value of elasticity hence answer = 1.5 %.