when price of a good is rupees 10 per unit consumer spend rupees 2,000 and when rise to Rupees 15 per unit he spends rupees 3000 calculate price elasticity of demand by percentage method also commented on the nature of price elasticity
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Explanation:
The price elasticity of demand (which is often shortened to demand elasticity) is defined to be the percentage change in quantity demanded, q, divided by the percentage change in price, p. The formula for the demand elasticity (ǫ) is: ǫ = p q dq dp .
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