Saved Bookmarks
| 1. |
The price elasticity of demand of a commodity is (-)1.5. When its price falls by Rs. 1 per unit its quantity demanded rises by 3 units. If the quantity demanded before the price change was 30 units, what was the price at this demand ? |
|
Answer» <P> Solution :`{:(,"PED"=[-]1.5" Given"),("INITIAL Price [P] = ?","Initial Quantity or quantity demanded before the price change [Q] = 30"),("New Price "[P_(1)]=?,"New Quantity "(Q_(1))=?),(Delta P=-1,Delta Q=3):}``PED=(Delta Q)/(Delta P)xx(P)/(Q) "or" (-)1.5 =(3)/((-)1)xx(P)/(30)` `P=(45)/(3)=15` So, the price before change, i.e., initial price = 15 at the initial quantity = 30. Numerical Problems to CALCULATE Price Elasticity of Demand by PERCENTAGE Method. |
|