Question

Question :- When the price of the commodity falls from rs 10 to 5 , its quantity demand doubles , calculate its elasticity ??

Answer 1

Heya....

Ques :- When the price of the commodity falls from rs 10 to 5 , its quantity demand doubles , calculate its elasticity ??

Solution ____________

P = 10
P1 = 5
∆ P = P1 - P = 5-10 = -5

% change in price = ∆P/P X 100
= -5/10 X 100 = -50%

% change in Quantity demanded = 100

Now ____

Price elasticity is ___

- % change in Quantity demanded / % change in price

= - 100/-50 = 2 Answer

Thank you

Answer 2

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