CBSE Class 11-commerce Answered

If price of a good Rises from rupees 46 to rupees 50 per unit the demand decreases from 30 units to 15 units calculate coefficient of price elasticity of demand

Asked by rohitsinghrathoria | 27 Jul, 2019, 06:54: AM

Expert Answer

Ep=

P e r c e n t a g e space c h a n g e space i n space q u a n t i t y space d e m a n d e d equals space fraction numerator c h a n g e space i n space q u a n t i t y space left parenthesis increment Q right parenthesis over denominator I n i t i a l space q u a n t i t y space left parenthesis Q right parenthesis end fraction cross times 100 space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space equals space fraction numerator left parenthesis 30 minus 15 right parenthesis over denominator 30 end fraction cross times 100 equals space 50 percent sign P e r c e n t a g e space c h a n g e space i n space p r i c e equals space fraction numerator c h a n g e space i n space p r i c e space left parenthesis increment P right parenthesis over denominator I n i t i a l space p r i c e space left parenthesis P right parenthesis end fraction cross times 100 space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space space equals fraction numerator left parenthesis 50 minus 46 right parenthesis over denominator 46 end fraction cross times 100 space equals space minus 50 percent sign E p equals space fraction numerator begin display style P e r c e n t a g e space c h a n g e space i n space q u a n t i t y space d e m a n d e d end style over denominator begin display style P e r c e n t a g e space c h a n g e space i n space p r i c e end style end fraction E p equals space fraction numerator 50 over denominator negative 50 end fraction equals space minus 1

Answered by Christina | 30 Jul, 2019, 10:46: AM

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