Economy, asked by dakshesh4549, 1 year ago

The demand curve for the commodity is given as Dx=10+2P. If the slope of the demand curve is (-2), calculate price elasticity of demand for the commodity when the price is ₹5 per unit.

Answers

Answered by goyalaviral2p3qjv1

Bro this demand function defies the law of demand and accordingly you cannot find elasticity of demand. Probably this demand function would Dx=10-2p because demand function =a-bp where a is quantity demanded at zero price level and b is |1/m| and p is the price. M here is the slope of demand curve. So if we consider this demand function then the answer is .125. Ed= 1/m * initial price/initial quantity. Cheers

dakshesh4549: But bro first of all equation is also right and the answer coming in book is also right as just now my fiend told me.So bro sorry to say your explanation is not correct.Please tell the with solution.

goyalaviral2p3qjv1: Bro see

dakshesh4549: yo

goyalaviral2p3qjv1: When price =1 demand is 12 and when price =2 demand is 14

goyalaviral2p3qjv1: Now this tells us that as price is increasing or demand is increasing and hence law of demand fails....

dakshesh4549: bro Equation is Dx=10 +2P. So we will put ₹5 in P so Demand will be 20.Then by 1/slope of curve ×P/Q will give us answer.

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