The price of the product A was reduced from 100 to 90 rupees and, as a result, the quantity demanded has increased from 70 to 75 units. The demand is
Answers
Answer:
35 to 50 is answer
Explanation:
35 and 50 is the ans
Answer :
The demand for product A is elastic.
Explanation :
The relationship between the price of a product and the quantity demanded of that product can be represented by the demand equation. The general form of the demand equation is:
Qd = a - bP
Where Qd is the quantity demanded, P is the price of the product, and a and b are constants.
We can use the information given in the problem to find the values of a and b in the demand equation. We know that when the price of the product is 100, the quantity demanded is 70, and when the price of the product is 90, the quantity demanded is 75. So we can use these two points to find the values of a and b in the equation.
Plugging in the first point (P = 100, Qd = 70) into the demand equation:
70 = a - b(100)
Plugging in the second point (P = 90, Qd = 75) into the demand equation:
75 = a - b(90)
We can use these two equations to find the values of a and b.
a = 75 + b(90)
70 = a - b(100) = (75 + b(90)) - b(100)
70 = 75 + b(90) - b(100)
Solving for b, we get:
b = -0.1
We can use this value of b to find the value of a:
a = 75 + (-0.1)(90) = 75 - 9 = 66
So the demand equation is:
Qd = 66 - 0.1P
This equation represents the demand for the product A.
To know more about the concept please go through the links :
https://brainly.in/question/34584957
https://brainly.in/question/50781882
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