Question

the price elasticity of demand of x is -1.25 . it's price fall from rs 10 to rs 8 per unit. calculate % change in its demand ​

Answer 1

HEY MATE

HERE IS YOUR ANSWER

Given-

☆ price of elasticity of demand (ed) = (-) 1.25.

☆ Original price (p) = 10.

☆ New price (p1) = 8.

Change in price = p1 - p

= 8 - 10

= -2.

Now , we have

change in price = -2.

And,

% change in price :

change in price/original price × 100

= -2/10 × 100

= -20...

Now, we find that-

Ed = %change in quantity demanded/ % change in price.

= 1.25 = % change in quantity demanded / -20

= -1.25 ×20 = % change in quantity demanded

= 25%

thus, percentage change in quantity demanded by 25%.......

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