Economy, asked by aditipateriya0409, 10 months ago

The price of a commodity is 10 per unit and its quantity demanded at this price is 500 units. If its
quantity demanded rises by 75 units due to fall in price by 10 per cent, calculate its price elasticity of
demand.
{Ed = (-)1.5

Answers

Answered by Edusiast
4

Answer:

Please find your answer attached.

Explanation:

Please visit our website Edusiast .com. You can ask all your economics questions under ask question page. Thanks

Attachments:
Answered by kniharikareddi
0

Answer:

-1.3256

Explanation:

The Elasticity is nothing but the percentage change in demand divided by percentage change in price

Ed = %∆Qdemand/%∆price

given

Initial quantity = 500 units

Initial price = 10

Final quantity = 575 units

Final price = 90% of 10 = 9

Ed = ((575-500)/((575+500)/2))/((9-10)/((9+10)/2))

Ed = 0.0349 / -0.0263

Ed =-1.3256

Also additional info as |Ed| = 1.3256 is greater than 1 it is elastic in nature

Please mark this answer as brainlist, thanks

Similar questions