Question

when price is 9/- per unit, demand for a commodity is 90 units. As the price falls to 7/- per unit, demand expands to 140 units . calculate elasticity of demand​

Answer 1

Answer:

P=9

∆P=2

Q=90

∆Q=50

By proportionate method,

elasticity of demand=∆Q/∆P×P/Q

=50/2×9/90

=5/2

=2.5

Explanation:

P- initial price

∆P-change in price

Q-initial quantity

∆Q- change in quantity