Question

The price elasticity of demand of a commodity is -1.5 when its price Falls by one per unit its quantity demanded rice by 3 units if the quantity demanded before the price change was 30 units what was the price at the demand

Answer 1

Solution

Given that :-

initial quantity of commodity Q = 30 units .

final quantity rises by 3 units Q1= 33 units

elasticity of demand = -1.5

let's assume that initial price of commodity P = x

change in price ∆P= -1

change in quantity demanded ∆Q= 3 units.

Ed = $\frac{change\:in\:Q×P}{Change\:in\:P×Q}$ .

-1.5 = $\frac{3×x}{-1×30}$ .

10×1.5 = x

15 = x

so initial price of the commodity is 15 rupees

Answer 2

Answer:

15 rupees

Explanation:

initial quantity of commodity Q=30units

finial quantity rises by 3units Q¹=33units

elasticity of demand=1.5

let's assume that initial price of commodity P=x

change in price P=1

change in quantity demanded Q=3units

eD=change in Q×P

--------------------

change in P×Q

-1.5=3×X

-------

-1×30

=> 10×1.5=X

=>15=X