Question

When price of a commodity falls by Rs 4 per unit, its quantity demanded increases by 12 units. Its price elasticity of demand is (-) 1. Calculate the quantity demanded at the price before change was Rs 10 unit.

Answer 1

Explanation:

Theory Of Consumer Behaviour

When the price of a commodity falls by र 2 per unit, its quantity demanded increases by 10 units. Its price elasticity of demand is (-)l. Calculate its quantity demanded at the price before change which was र 10 per unit. Quantity demanded before change in price = 50 units.