Question

When price of a good is Rs.13 per unit, the consumer buys 11 units of
that good. When price rises to Rs.15 per unit, the consumer continues
to buy 11 units. Calculate Price elasticity of demand?​

Answer 1

Explanation:

p= 13

p1= 15

q= 11

q1= 11

Ed= (∆q/∆p)x(p/q)

∆q= q1-q = 11-11= 0

∆p = p1-p = 15-13 = 2

Ed= (0/2)x(13/15)

Ed= 0 Perfect inelastic