Question

the price elasticity of demand of a good is 0.5. the consumer buys 50units of the good at a price of ruppee 10 per unit . at what price Will the consumer by willing to buy 60units​

Answer 1

$\bf\underline{Given :-}$

Elasticity of demand (Ed) = 0.5

Quantity demanded (Q) = 50

Price of commodity (P) = 10

New Quantity demanded (Q1) = 60

Change in Qty demanded (ΔQ) = Q1 - Q

(60 - 50) = 10

New price of commodity (P1) = ?

$ed = ( - ) \frac{Δq}{Δp} \times \frac{p}{q} \\ \\ 0.5 = ( - )\frac{10}{Δp} \times \frac{10}{50} \\ \\ 0.5 = ( - ) \frac{100}{Δp50} \\ \\ Δp50 = ( - )100 \times 0.5 \\ \\ Δp = ( - )\frac{50}{50} =( - ) 1$

After finding out the value of ΔP, the new price of commodity is :-

P1 = P + ΔP = 10 + (-)1

$\boxed {P1 = 9}$ $\bf\green {Answer}$

Answer 2

Explanation:

Given:−

Elasticity of demand (Ed) = 0.5

Quantity demanded (Q) = 50

Price of commodity (P) = 10

New Quantity demanded (Q1) = 60

Change in Qty demanded (ΔQ) = Q1 - Q

(60 - 50) = 10

New price of commodity (P1) = ?

ep=(∆q/∆p)*p/q

.5=-(10/∆p)*(10/50)

∆p= -4

After finding out the value of ΔP, the new price of commodity is :-

P1 = P + ΔP = 10 + (-4)

p1= 6