the quantity demanded increases from hundred units to 200 units when the price decreases from RS 12 RS 10 .calculate the elasticity of demand
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ohk..i 'll solve it
okky I m waiting
i have answered
see in your 1st ques
but I did not understand
meana.,method or image
okky ...
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just write the formula of both Ed equals to each one and doubles it by multilpy by 2
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It is given that, the demand for a commodity increases from 100 units to 200 units when the price of that commodity decreases from 12 to 10 Rs.
We have to find the Elasticity of Demand.
The percentage change in price = (change in price / original price ) X 100
= (2 / 12) X 100
= 16.67%
The percentage change in quantity = (change in quantity / original quantity ) X 100
= (100 / 100 ) X 100
= 100%
The elasticity of demand = % change in quantity / % change in price
= 100 / 16.67
= 5.99
The elasticity of demand is 5.99.
The elasticity of demand comes after dividing the percentage change in quantity with the percentage change in price. Thus, the elasticity of demand is 5.99.
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