Question

The price elasticity is 2 .the persentage change is equal to 5 find the change in quantity.

Answer 1

The price elasticity is 2 .the percentage change is equal to 5 find the change in quantity.

Explanation:

Given -   Price Elasticity Demand (PED) = 2

               Percentage change in price = 5

To Find - Percentage change in quantity = ?

Solution -

Let us assume Percentage change in quantity as x

Using the formula for the coefficient of PED -

PED = $\frac{Percentage change in quantity}{Percentage change in price}$

Therefore, substituting the given values we get,

2 = $\frac{x}{5}$

2× 5 = $x$

$x$ = 10

Hence, the percentage change in quantity = 10.