Question

when the price of good X increased from rs.600 to rs.650, its demand decreased from 200 units to 188
units. what is its price elasticity of demand

Answer 1

Explanation:

hope it help u and please mark brainlist

Answer 2

Given:

Prices of good=Rs.600 and Rs.650

Quantity demanded of good X=200 units and 188

units

To find:

The price elasticity of demand

Solution:

The required value is - 0.72.

We can calculate the required elasticity by dividing the per cent change in quantity by the change in price.

So, the required value of price elasticity=% change in quantity/ % price change

The % change in quantity=(New quantity-Old quantity)/Old quantity×100

=(188-200)/200×100

=(-12)/2

= -6

Similarly, the % change in price=(new price-old price)/old price×100

=(650-600)/600×100

=50/6

=8.33

Using the values,

The required elasticty= -6/8.33

= - 0.72

Therefore, the required value is - 0.72.