Question

the market demand for a good at rupees 5 per unit is 100 units when price changes market demand rise to 150 Units. find out the new price if the elasticity of demand is 2.5​

Answer 1

Answer:

By connecting these two extremes, you can find every combination that José can afford along his budget line . For example, at point R, José buys 2 T-shirts and 4 movies. This costs him:

T-Shirts @ $14 x 2 = $28

Movies @ $7 x 4 = $28

Total = $24 + $28 =

Answer 2

Given :-

P [ initial price ] = Rs 5 per unit .

Q [ initial quantity ] = 100 units

P1 [ final price] = x rupees

Q1 [ final quantity] = 150

Ed [ elasticity ] = 2.5

To Find :-

The final price .

Solution :-

$\large{\boxed{\sf{\implies \; E_d = - \frac{P}{Q} \times \frac{\triangle Q}{\triangle P} }}}$

⇒ ΔP = P1 - P

⇒ΔP = x - 5

⇒ΔQ = Q1 - Q

⇒ΔQ = 150 - 100

⇒ΔQ = 50

Putting these values in formula

$2.5 = \frac{5}{100} \times \frac{50}{x-5}$

$2.5 = \frac{1}{20} \times \frac{50}{x-5}$

$2.5 = \frac{50}{20x - 100}$

2.5 × [20x - 100] = 50

50x - 250 = 50

x - 5 = 1

x = 5+1

x = 6