what is original price of production price elasticity is 0.71 in the demand changes from 20 to 15 minutes and the new price is rupees 10 use arc method for computation
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Explanation:
The answer to the above question is 6.45.
The demand changes from 20 to 15 units, so the difference of Unit = 5
As we already know, the Price Elasticity value is = 0.71
Therefore, the change in Price = 5*0.71 = 3.55
The old price value is already given as 10
With the help of the old value, we can compute the original price of a commodity
Old price = 10
The original value of a commodity = 10 - 3.55 = Rs. 6.45
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