Question

The price elasticity of demand of a commodity is 4 and the percentage change in price is 8 . Find the percentage change in the quantity demanded..​

Answer 1

Explanation:

what is price elasticity of demand? the price elasticity of demand of a commodity is 4 and the percentage change in price is 8. find the percentage change in quantitiy demanded

Answer 2

Answer:

Concept:

The relative change in the quantity of commodity demand is known as the elasticity of demand, and it depends on the price of the commodity, the price of other items, and consumer income. We can define demand elasticity as the degree to which the quantity of a good is responsive to changes in any of its determinants, including the price of the good, the price of similar goods, and consumer income.

Explanation:

Given:

The price elasticity of demand for a commodity is 4

The percentage change in price is 8
Find:

The percentage change in the quantity demanded.

Solution:

Elasticity of demand (Ed) = 4

Percentage change in quantity demanded = ?

Percentage change in price = 8

$\text { Elasticity of demand }\left(E_{d}\right)=\frac{P \text { ercentage change in quantity demanded }}{\text { P ercentage change in price }}$

                   4 = Percentage change in quantity demanded / 8

Percentage change in quantity demanded = 8 × 4

Percentage change in quantity demanded = 32

       The percentage change in the quantity demanded is 32%

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