Question

when the price of goods fall by 10% its quantity demand Rises from up to 50 units calculate price elasticity of demand by the percentage method

Answer 1

price elasticity of demand ≈ (-) percentage change in quantity demanded /                                                          percentage change in price

                                 = (-) 50 / 10 = 5

if the 10% fall in price causes the 50 units extension in demand ,then it will be a greater than unitary elastic demand or elastic demand  Ed > 1.